About
Larsen & Toubro Ltd
Larsen & Toubro Limited is a major technology, engineering, construction, manufacturing and financial services conglomerate, with global operations. The Company addresses critical needs in key sectors like Hydrocarbon, Infrastructure, Power, Process Industries and Defence for their customers in over 50 countries around the world. The Company's manufacturing footprint extends across eight countries in addition to India.
The Company is a major technology, engineering, construction, manufacturing and financial services conglomerate, with global operations. The company is one of the largest and most respected companies in India's private sector. The company operates in three segments comprising of Engineering & Construction Segment, Electrical & Electronics segment, Machinery & Industrial Products, and others.
The company's Engineering, Construction & Contracts Division (ECCD) undertakes engineering, design and construction of infrastructure, buildings, factories, water supply, and metallurgical & material handling projects covering civil, mechanical, electrical and instrumentation engineering disciplines. Their Engineering & Construction Division designs, engineering and executes projects for hydrocarbon sector with front-end design. Its heavy engineering division is organized into two independent companies: Heavy Engineering Independent Company and Ship Building Independent Company. Their Electrical & Electronics division comprises Electrical and Automation Independent Company and Medical Equipment and Systems business.
L&T has an international presence, with a global spread of offices. A thrust on international business has seen overseas earnings grow significantly. It continues to grow its overseas manufacturing footprint, with facilities in China and the Gulf region. The company's businesses are supported by a wide marketing and distribution network, and have established a reputation for strong customer support.
Larsen & Toubro Ltd was incorporated in the year 1946 as a private limited company. Earlier, the company was established as a partnership firm founded by two Danish engineers Henning Holk Larsen with Soren Kristian Toubro im Mumbai. In December 1950, the company became a Public Company with a paid-up capital of Rs.2 million. They executed prestigious orders during this period which includes the Amul Dairy at Anand and Blast Furnaces at Rourkela Steel Plant.
During the year 1981-82, the company acquired 2 bulk shipping carriers from Japan. During the year 1983-84, they started one cement plant with capacity of 1 MTPA at Maharashtra. In the year 1997, the company formed a joint venture company with Deere Pvt Ltd to manufacture agricultural tractors namely L&T-John Deere Pvt Ltd. In April 1, 2003, the company transferred their cement business to Ultra Tech Cement Ltd.
The company received a host of awards, medals and trophies for their continuous efforts. They received Environmental Excellence Gold award from Greentech Foundation during the years 2003-04 and 2004-05. Engineering Export Promotion Council (EEPC) offered a trophy for high exports. The Ministry of Power conferred the first prize in National Energy Conservation for the year 2005.
In July 2005, the company approved the divestment of their stake in L&T-John Deere Pvt Ltd. In August 2005, the company entered into a MoU with DatarSwitchgear Ltd (DSL) to merger the company with L&T. As on October 2005, the company totally exited from the packaging business by sale of their Glass Containers Business to ACE Glass. In the year 2006, the company amalgamated two of their own folds, the L&T Power Investments Pvt Ltd (LTPL) amalgamated with India Infrastructure Developers Ltd (IIDL).
During the year 2006-07, A Wall Street Journal survey featured L & T among Asia's 'Most Admired Companies' and ranked the company No.1 for quality of products and for overall reputation. In April 2007, the company and theirs associate Audco India Ltd (AIL) invested Rs 35 crore in the Coimbatore (TN) switchboard and valve unit. Larsen & Toubro made a tie up with Japan's Toshiba Corporation and Mitsubishi Heavy Industries for setting up manufacturing facilities for super-critical turbines and boilers used in coal-fired power generation plants.
During the year 2008-09, the company transferred their entire 100% stake in L&T Infrastructure Finance Company Ltd, L&T Finance Ltd and India Infrastructure Developers Ltd to L&T Capital Holdings Ltd (LTCHL). In March 31, 2009, the company acquired 50% stake in L&T-Demag Plastics Machinery Ltd from the joint venture partner Sumitomo (SHI) Demag Plastics Machinery GmbH. Accordingly, L&T-Demag Plastics Machinery Ltd became a wholly owned subsidiary of the company with effect from March 31, 2009.
In April 2010, the company and Rolls-Royce, the global power systems company, signed an MoU for cooperation to effectively address the projected need for light water reactors in India and internationally. Also, the company won a critical offshore platform contract from Gujarat State Petroleum Corporation (GSPC) valued at Rs 1060 crore. In May 2010, the company and Howden signed a joint venture to design, engineer, manufacture and supply axial fans and air preheaters to Indian thermal power plants ranging between 100 MW to 1200 MW. The joint venture will invest around Rs 100 crore for setting up of the industrial facility and related infrastructure. The manufacturing unit will be setup in Hazira, Gujarat.
In June 2010, the company secured orders aggregating Rs 747 crore from various customers like Coal India, Indiabulls Power Ltd and Hindalco Industries Ltd. Also, they secured orders aggregating to Rs 1440 crore for the construction of residential towers, township and factory building. The Thermal Power Plant Construction business unit secured two orders aggregating Rs 827 crore from GVK Power for their Gautami Combined Cycle Power Plant Expansion and from SEPCO-I for Talwandi Sabo Power Plant in Punjab.
In July 2010, the company won an offshore rig refurbishment contract from Oil and Natural Gas Corporation valued at Rs 376 crore. In August 2010, the company's Building & Factories Operating Company (B&F-OC), secured orders aggregating to Rs 10.25 billion for the construction of two hospital building, residential projects in Mumbai and a cement plant from a major cement manufacturer. Also, the company received two projects worth Rs 1195 crore from ONGC to set up additional processing units at its gas processing complexes at Hazira and Uran. In September 2010, the company and Befula Investments (South Africa) signed a shareholders agreement to incorporate Larsen & Toubro T&D SA (Pty) Ltd in South Africa to capitalize on the power transmission and distribution opportunities in South Africa.
In October 2010, the company received an order valued at Rs 1449 crore from DB Power Ltd promoted by the Bhaskar Group. In December 2010, they secured two orders amounting Rs 415 crore from Hindalco and Sepco-I. The Hindalco order worth Rs 253 crores is for carrying out structural steel works for the 6x150 MW captive power plant in Orissa. The Sepco-I order valued at Rs 162 crore is for the erection of boilers for their 2x660 MW Talwandi Sabo Power plant, developed by Sterlite Energy Ltd in Punjab.
In January 2011, the company secured orders aggregating Rs 1103 crore from various power plant developers for construction of merry go round systems, construction of dedicated railway lines to link power plant sites to the main line rail network. The company and Kobe Steel Ltd entered into a joint venture (JV) for the manufacture of internal mixers and twin screw rollerhead extruders for the tyre & rubber industry for global markets, including India. The JV aims to provide customers with products for the tyre industry. In February 2011, the company secured an order valued over Rs 1,100 crore from Gujarat State Electricity Corporation Ltd (GSECL), a government of Gujarat company, to set up a 1 x 375 MW gas based power plant at Dhuvaran, near Baroda in Gujarat, on EPC basis.
In May 2011, the company received an order valued over Rs 3500 crore from PPN Power Generating Company Ltd based in Chennai, for setting up a 3 x 360 MW gas based power plant at Village Pillaiperumalnallur in Nagpattinam District of Tamil Nadu State, on EPC basis. They won a process platform contract from Gujarat State Corporation (GSPC) valued at Rs 14.50 billion. In July 2011, the company bagged a major international EPC order valued at Rs 1210 crore from Qatar General Electricity & Water Corporation (KAHRAMAA) for supply and construction of thirteen extra high voltage (EHV) substations in Qatar.
In August 2011, the company bagged international orders valued at USD 889 million in the hydrocarbon sector. One order is from Abu Dhabi Gas Industries Limited (GASCO) for its Habshan-Ruwais-Shuweihat (52'/48' dia) Gas Pipeline Project. Valued at around USD 189 million, it involves EPC installation & commissioning of 123 KM of the pipeline to be commissioned in 24 to 26 months. The other order is a USD 450 million EPCI project awarded to L&T Hydrocarbon's Upstream Business Group from ADMA-OPCO, a subsidiary of ADNOC and a major producer of Oil & Gas for the UAE.
In August 2011, the company secured new orders worth Rs 1340 crore in the Building & Factories segment for the construction of commercial & residential buildings including add-on orders from ongoing projects. In September 2011, they received a project order valued around Rs 700 crore from the Petroleum Development Oman LLC (PDO). The order is for setting up a green field project planned to treat an average of 3 MMSCMD of gas. In November 2011, they bagged new orders worth Rs 1629 crore in the building and factories segment.
In December 2011, the company bagged a major order valued at Rs 21.64 billion in their Infrastructure Segment from GMR Infrastructure. The order is for construction of stretches consisting of six laning of Kishangarh Udaipur Ahmedabad Highway. The development would be executed on EPC (Engineering, Procurement & Construction) basis.
In 2012 Larsen and Toubro's financial arm L&T Finance Holdings Limited (LTFH) has entered into the housing finance business by acquiring Indo Pacific Housing Finance Ltd (IPHF), a small sized housing finance company. Larsen & Toubro (L&T) also bagged Rs 1,937 crore order for 4-laning of a major portion of Shivpuri-Dewas section of NH-3 in Madhya Pradesh from GVK Group. The company and Samsung Techwin have joined hands to cooperate in the Indian Army's Tracked Self Propelled Artillery programme. L&T and Nexter Systems join hands for Indian army artillery programme. L&T Joint Venture firm bags contract from Sadara Chemical Company. L&T Construction Secures Orders Valued at over Rs 2592 Crore, Rs 2040 crores and Rs 2008 crore from various business segments. L&T Wins Rs. 749 Crore Contract from ONGC for 4 Wellhead Platforms. L&T Wins Prestigious Order for Manufacture of Cryostat for International Fusion Energy Project. L&T led Joint Venture wins Rs. 1252 Cr Delhi Metro Contract. Larsen & Toubro bags $250mn EPC contract in Ras Laffan, Qatar. L&T bags Rs 781 cr contract from ONGC
In 2013 L&T Completes Acquisition of Audco India Ltd. L&T IDPL bags Rs. 1293 crore road project in Odisha. L&T Group Company Wins Saudi Aramco Contract. L&T Ranked Asia's 2nd Most Sustainable Company in Industrial Sector. L&T Technology Services Wins Frost & Sullivan Excellence Award. L&T Wins Golden Peacock Award for Excellence in Corporate Governance. L&T Power Wins National Energy Conservation Award. L&T Wins ICICI Foundation-CNBC TV 18 Inclusive India' Award. L&T Construction also Wins Rs.1630 Crores Expressway Project in Uttar Pradesh. L&T Wins Saudi Aramco Contract. L&T Wins Rs 5100 Crore Supercritical Power Plant Order from MP State Utility. L&T Construction Wins Rs. 4510 Crs Doha Metro Project
In 2015 L&T Won Golden Peacock Award for Risk Management', Award for Excellence in Power Project Execution from the Central Board and Good Corporate Citizen Award. L&T Construction Commissions India's first 765kV Gas Insulated Substation. L&T secures Rs 5,580 cr power plant order from NTPC. L&T also Signs MoU with AREVA for Jaitapur Nuclear Power Project. L&T opens new service centre in Nagpur.
At the time of announcement of Q4 March 2015 results on 30 May 2015, L&T said that the company's consolidated order inflow surged 39% on year-on-year basis at Rs 47582 crore in Q4 March 2015. On 3 July 2015, L&T announced that it has successfully flagged off India's first Nuclear 700 MWe Steam Generator for Kakrapar nuclear power plant in Gujarat. At the time of announcement of Q1 June 2015 results on 31 July 2015, L&T said that the company won new orders worth Rs 26376 crore at consolidated level in Q1 June 2015.
On 21 September 2015, Larsen & Toubro announced that it has sold 8.52 crore equity shares of its subsidiary L&T Finance Holdings representing 4.95% stake in the company on the National Stock Exchange at Rs 70 per share. At the time of announcement of Q2 September 2015 results on 30 October 2015, L&T said that the company won new orders worth Rs 28620 crore at consolidated level in Q2 September 2015.
On 9 November 2015, Larsen & Toubro announced that it has entered into an in-principle agreement for strategic sale of Kattupalli port in Tamil Nadu to Adani Kattupalli Ports Private Limited (AKPPL), a subsidiary of Adani Ports and Special Economic Zone (APSEZ). At the time of announcement of Q3 December 2015 results on 29 January 2016, L&T said that the company won new orders worth Rs 38528 crore at consolidated level in Q3 December 2015.
On 25 February 2016, L&T announced that its fully-owned subsidiary L&T Hydrocarbon Engineering Limited (LTHE) has signed a long-term agreement with McDermott International focused on subsea projects in deepwater segment emerging on the east coast of India. Under the agreement, LTHE and McDermott will develop a cost-effective approach which will utilize LTHE's state-of-the-art, strategically located Kattupalli facility near Chennai. It will be used for fabrication and setting up of a local spool base in India.
On 31 March 2016, L&T announced that it has sold its entire 89% stake in L&T Infocity Limited to Ace Urban Developers for total consideration of Rs 191 crore. L&T had promoted L&T Infocity Limited as a special purpose vehicle (SPV) in 1997 in partnership with Andhra Pradesh Infrastructure Investment Corporation to develop IT infrastructure in Andhra Pradesh. At the time of announcement of Q4 March 2016 results on 25 May 2016, L&T said that the company won new orders worth Rs 43334 crore at consolidated level in Q4 March 2016.
On 31 May 2016, L&T's wholly-owned subsidiary L&T Hydrocarbon Engineering (LTHE) announced a teaming agreement with Parsons Corporation to provide engineering and design solutions for onshore and offshore projects across the hydrocarbon, fertilizer, chemicals, and modular plant sectors. On 15 July 2016, L&T announced that it has decided to participate in the offer for sale of equity shares by way of initial public offering by its subsidiary L&T Technology Services. L&T proposes to sell up to 15% of the equity shares held in L&T Technology Services through the offer.
At the time of announcement of Q1 June 2016 results on 29 July 2016, L&T said that the company's consolidated order inflow rose 14% on year-on-year basis at Rs 29702 crore in Q1 June 2016. On 26 August 2016, L&T Group Chairman A.M. Naik said at the 71st Annual General Meeting of the company that L&T plans to achieve revenue of Rs 2 lakh crore (USD 30 billion at the prevailing exchange rates) by 2021 without compromising on profit margins and achieving an order inflow in excess of Rs 2.5 lakh crore per annum.
On 22 September 2016, Larsen & Toubro announced that it has won an order worth USD 99.7 million from Vietnam Border Guard for design and construction of high speed patrol vessels in India as well as for transfer of design and technology along with supply of equipment and material kits for construction of follow-on vessels at a Vietnam shipyard. It is the biggest export order given to a private Indian Shipyard till date.
On 4 October 2016, Larsen & Toubro announced that it has achieved synchronisation of the first 660 MW supercritical unit (Unit-5) of the 2x660 MW supercritical thermal power project at Chhabra in Rajasthan in record time of 42 months and four days from the date of Notice to Proceed.
On 14 October 2016, L&T announced that a consortium of the company and Sojitz Corp., Japan has won a major order worth Rs 3799 crore from the Dedicated Freight Corridor Corporation of India Ltd. (DFCCIL). This Design and Build Integrated Package involves the construction of Civil (Embankment, Structure, Tunnel), Track Works, Overhead Electrification, Traction Substations and Signaling & Telecommunication Works for double line electrified tracks with 2x25 kV AC, high rise Overhead Catenary System capable of operating at a maximum train speed of 100 Km/h, from Rewari to Dadri (128 Km).
On 20 October 2016, L&T announced the signing of a formal contract with the Department of Information & Technology, Maharashtra Government, under which Nagpur will be converted into the country's first large-scale integrated Smart City.
L&T-MHPS Boilers Private Limited (LMB), a joint venture of Larsen & Toubro Limited (L&T) and Mitsubishi Hitachi Power Systems Limited (MHPS), Japan, signed a Technology Licence Agreement with MHPS on 7 November 2016 for Selective Catalytic Reduction (SCR) systems. The technology licensing agreement is for design, engineering, manufacture, installation, commissioning, and sale of new boilers under BTG, EPC or SG packages or standalone SCR systems, and for existing and under construction boilers on exclusive basis in India.
On 8 November 2016, L&T announced that it has signed a long-term technical licence agreement with Chiyoda Corporation, Japan for its Flue Gas Desulphurisation (FGD) technology. The agreement grants L&T exclusive rights to undertake EPC of CT-121TM FGD Systems. At the time of announcement of Q2 September 2016 results on 22 November 2016, L&T said that the company's consolidated order inflow rose 11% on year-on-year basis at Rs 31119 crore in Q2 September 2016.
On 2 January 2017, L&T announced that it has bagged a project from Pune Municipal Corporation to convert Pune into a smart city as a part of Government of India's Smart City Mission. On the same day, L&T announced that its fully owned subsidiary L&T Hydrocarbon Engineering in consortium with EMAS CHIYODA Subsea, has won two awards involving Engineering, Procurement, Construction and Installation contracts from Saudi Arabian oil giant and biggest oil company in world, Saudi Aramco.
On 13 February 2017, L&T announced that the company has formed a joint venture with MBDA, a world leader in missile systems, to develop and supply missiles and missile systems to meet the growing potential requirements of the Indian armed forces. L&T will own 51% of the new joint venture company with MBDA owning the remaining 49% stake.
On 25 February 2017, L&T announced that its wholly owned subsidiary L&T Hydrocarbon Engineering (LTHE) has bagged an onshore EPC contract worth around Rs 1100 crore from Indian Oil Corporation Limited (IOCL) for setting up a 0.740 MMTPA Fluidised Cracking Unit (FCC) including LPG Treatment Facility at IOCL's Bongaigaon refinery in Assam.
On 28 February 2017, L&T announced that its wholly-owned subsidiary L&T Hydrocarbon Engineering (LTHE) has signed an Enterprise Framework Agreement (EFA) with Shell Global Solutions International B.V., for providing Engineering, Procurement and Construction Management (EPCM) services for Shell projects in the Middle East, South East Asia and India. The EFA is for a period of five years.
On 20 March 2017, L&T announced that its wholly-owned subsidiary L&T Hydrocarbon Engineering Limited (LTHE) has bagged an offshore contract valued at Rs 1656 crore for the Neelam Re-Development & B173AC Project from Oil & Natural Gas Corporation (ONGC). On 28 March 2017, L&T announced that the Buildings & Factories Business of L&T Construction has bagged a major design & build order worth Rs 2903 crore to re-develop Mumbai's century-old BDD Chawls for Maharashtra Housing and Area Development Authority (MHADA).
On 30 March 2017, L&T announced that its wholly-owned subsidiary L&T Hydrocarbon Engineering Limited has bagged orders totalling close to Rs 4000 crore in the International market. On 7 April 2017, L&T announced that it has commissioned gas turbines in open cycle for two large gas-based power projects in Bangladesh in quick succession during March 2017.
On 21 April 2017, Larsen & Toubro and Hanwha Techwin (HTW) of South Korea signed a contract for execution of the 155mm/ 52 Cal Tracked Self Propelled (SP) gun program for the Indian Army. On 12 May 2017, Larsen & Toubro announced that it has won a contract worth Rs 4500 crore for supply of 100 units of 155mm/ 52 calibre Tracked Self-Propelled gun systems to the Indian Army. It is the largest private sector defence order for artillery guns.
On 26 May 2017, L&T announced that its wholly-owned subsidiary L&T Hydrocarbon Engineering (LTHE) has signed a Memorandum of Agreement (MOA) with Institute of Chemical Technology (ICT) to build ethanol plants based on the fully indigenous technology developed by ICT for producing Second Generation Ethanol.
At the time of announcement of Q4 March 2017 results on 29 May 2017, L&T said its consolidated order inflow rose 9.6% on year-on-year basis to Rs 47289 crore in Q4 March 2017. On 20 June 2017, Larsen & Toubro announced the launch of a Floating Dock (FDN-2) designed and built for the Indian Navy at the company's greenfield shipyard at Kattupalli, near Chennai. This marks a significant achievement for L&T's Shipbuilding arm in Design, Construction and Project Management of Defence Vessels.
At the time of announcement of Q1 June 2017 results on 28 July 2017, L&T said that the company won new orders worth Rs 26352 crore at consolidated level in Q1 June 2017 in a challenging business environment. On 2 August 2017, Larsen & Toubro announced the bagging of a Rs 3375-crore major breakthrough order from Metro Express Limited which is owned by the Government of Mauritius to design and build an Integrated Light Rail-based Urban Transit System in Mauritius. The project will be fully funded through a Government of India grant and Line of Credit.
On 16 August 2017, L&T announced that it entered into a definitive agreement for the divestment of its entire stake in its wholly-owned subsidiary L&T Cutting Tools Limited to IMC International Metalworking Companies B.V, a company owned by Berkshire Hathaway Inc., for a total consideration of Rs 174.04 crore.
On 2 September 2017, L&T announced that its subsidiary Infrastructure Development Projects Limited (L&T IDPL) has filed an application with Securities and Exchange Board of India for registration of its proposed infrastructure investment trust, named IndInfravit Trust.
On 3 October 2017, Larsen & Toubro announced that it has completed the purchase of the entire remaining 26% stake held by Airbus Defence and Space GmbH (earlier known as EADS Deutschland GmbH) in L&T Cassidian, a joint venture between Larsen & Toubro and Airbus Defence and Space GmbH.
At the time of announcement of Q2 September 2017 results on 11 November 2017, L&T said that the company won new orders worth Rs 28732 crore at consolidated level in Q2 September 2017 amidst subdued business environment, policy uncertainties and delayed implementation.
On 1 January 2018, L&T announced that its wholly owned subsidiary L&T Hydrocarbon Engineering Limited (LTHE) has secured a major EPC contract for Crude Distillation and Vacuum Distillation Unit (CDU & VDU) from Hindustan Petroleum Corporation Limited, Visakhapatnam Refinery, and an extension to an ongoing contract for Reliance Industries Jamnagar, both adding to about Rs 2100 crore. On 2 January 2017, L&T announced that its construction division has won orders worth Rs 1454 crore across various business segments.
On 5 January 2018, L&T announced that its wholly-owned subsidiary L&T Hydrocarbon Engineering Limited (LTHE) has secured an offshore contract for Bassein Development 3 Well Platform & Pipeline Project' from Oil & Natural Gas Corporation (ONGC). The order is valued at approximately Rs 1483 crore. On 8 January 2018, L&T announced the Transportation Infrastructure and Water & Effluent Treatment businesses of L&T Construction have jointly bagged three EPC orders worth Rs 2265 crore from Andhra Pradesh Capital Region Development Authority (APCRDA).
At the time of announcement of Q3 December 2017 results on 31 January 2018, L&T said its consolidated order inflow jumped 38% on year-on-year basis to Rs 48130 crore in Q3 December 2017. Consolidated order book of the group stood at Rs 270727 crore as on 31 December 2017. The international order book constituted 25% of the total order book.
The board of directors of the company at a meeting held on 31 January 2018 approved subscription to equity shares offered by its subsidiary L&T Finance Holdings (LTFH) on a preferential basis up to an amount not exceeding Rs 2000 crore, subject to necessary approvals, including the approval of board of directors and shareholders of LTFH. The exact amount of the subscription would depend on the preferential issue that LTFH would be making to L&T.
During the FY2019, the company repaid long-term borrowings of USD 233 million (approx.Rs 1610 crore including secured debentures of Rs 400 crore). On the other hand, the company raised USD 100 million of foreign currency borrowings and Rs 90 Crore of Rupee Term Loan as fresh unsecured long-term borrowings for meeting business requirements and certain capital expenditure.
As at 31March 2019, the gross property, plant and equipment, investment property and other intangible assets including leased assets, stood at Rs 12,174.29 crore and the net property, plant and equipment, investment property and other intangible assets, including leased assets, at Rs 7,934.32 crore and spent capital expenditure during the year amounted to R 1,571.41 crore.
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 15 October 2018, on a proportionate basis by way of the tender offer route through the stock exchange mechanism at a price of Rs 1,475 per equity share, aggregating up to Rs 9,000 crore.
The company has entered into a share purchase agreement on 18 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.
Further the company, has acquired entire stake held by Tamil Nadu Industrial Development Corporation (TIDCO) in L&T Shipbuilding Limited on 10 April 2019. With this acquisition, L&T Shipbuilding Limited is now a wholly owned subsidiary of the Company.
Pursuant to an order dated 13 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 Rs 345 crore.
The Company has divested its entire stake in L&T Kobelco Machinery Private Limited, a subsidiary, to Kobe Steel, Ltd. on 17 April 2019.
As at 31 March 2019, L&T Group comprises 110 subsidiaries, 8 associates, 27 joint venture companies and 31 joint operations. L&T Group achieved order inflow of Rs 176834 crore during the year 2018-19, registering a growth of 15.6% over the previous year.
During the FY2019, the company received six British Sword of Honor awards and five-star certification from the British Safety Council, for third time in a row. The company's Eight projects won National Infrastructure & Construction Awards 2018. The company also 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.
The period leading up to the lockdown and the subsequent stoppage of all economic activity from 25th March, 2020 has adversely affected your Company's operations in late FY 2019-20 as well as the better part of Q1 FY 2020-21.
The total Order Book of R 303,857 crores as on 31March, 2020 grew by 4% over the previous year.
During the FY2020, on exercise of the conversion option of USD200 million 0.675% convertible bonds due in 2019, the Company has allotted 3,79,388 equity shares of Rs 2/- each against conversion of 7,970 FCCBs of the face value of US$ 1000 each. Remaining 1,92,030 Bonds of the face value of US$1000 each were redeemed/repaid.
The company repaid long-term borrowings of USD 492.03 million (approx. Rs 3,500 crore) and on the other hand the company raised USD 425 million of foreign currency borrowings for meeting business requirements and certain capital expenditure.
The Company has issued and allotted on private placement basis, Unsecured, Rated, Listed, Redeemable Non-convertible Debentures (NCDs) aggregating to Rs 5900 crore during the financial year 2019-20.
The Company has issued Commercial Papers amounting to Rs 4,845 Crore during the FY 2019-20.
As at 31 March 2020, the gross property, plant and equipment, investment property and other intangible assets including leased assets, stood at Rs 13,559.73 crore and the net property, plant and equipment, investment property and other intangible assets, including leased assets, at Rs 8,637.58 crore. The company spent towards Capital Expenditure during the year amounted to Rs 1,370.51 crore.
The Company had acquired the entire stake held by Tamil Nadu Industrial Development Corporation (TIDCO) in L&T Shipbuilding Limited thereby making it a wholly owned subsidiary of the Company. Subsequently, pursuant to the National Company Law Tribunal (Mumbai & Chennai bench) approval for the Scheme of Amalgamation, L&T Shipbuilding Limited has merged with the Company (appointed date 01 April 2019 and effective date 18 May 2020).
The Company acquired 3,27,60,229 equity shares of Mindtree Limited, pursuant to the Share Purchase Agreement. Further, 164,42,134 equity shares of Mindtree Limited have been acquired in the open market and 5,13,25,371 equity shares have been acquired through open offer.
Pursuant to the approval of the Composite Scheme of Amalgamation & Arrangement between L&T Realty Limited (LTR), L&T Construction Equipment Limited (LTCEL) and L&T Construction Machinery Limited (LTCML) by National Company Law Tribunal, Mumbai bench (appointed date 1st April 2018 and effective date 17 May 2020), LTR has been amalgamated into LTCEL and the manufacturing business of LTCEL has been demerged into LTCML. As consideration towards this amalgamation and demerger, the Company has been allotted 19,91,32,091 equity shares of Rs 10 each by L&T Construction Machinery Limited and 4,71,600 equity shares of Rs 10 each and 64,83,00,000 12% non-convertible preference shares of Rs 10 each by L&T Construction Equipment Limited.
Pursuant to the amendment agreement entered by the Company with Canadian Pension Plan Investment Board (CCPIB), L&T Infrastructure Development Projects Limited, (L&T IDPL), a wholly owned subsidiary of the Company, has allotted 30,84,62,468 equity shares to CCPIB India Private Holdings Inc. Accordingly, the Company presently holds 51% in L&T IDPL.
During March 2020, the COVID pandemic increased rapidly forcing Governments of most countries to enforce a lockdown of all activities. Heeding to the various guidelines issued in India by the Central and State Governments and abroad by various agencies on the Covid-19 pandemic, all establishments, offices & factories of the Company had shut down operations from 25 March 2020.
For the quarter ended 31 March 2020, the impact due to COVID 19 on your Company's revenues and net profits was approximately Rs 1800 crore and Rs 400 crore respectively.
The Company resumed partial service of operations from 14 April 2020, after implementation of standard protocols in line with the guidelines prescribed.
During the FY2020, the company has secured major orders such as CIDCO Housing Project at Navi Mumbai, One of the e largest greenfield airports in India at Navi Mumbai and Mandarin Oriental Hotel, Muscat in Oman.
The business was conferred several prestigious awards during FY2020 including British Safety Council's Sword of Honour, for the fourth consecutive year, with ten of its projects securing the award, The Royal Society for the Prevention of Accidents (UK)' Gold Awards for Occupational Health & Safety for eleven projects and 18 National Safety Council awards in various categories.
During the quarter ended 31 December 2020, the Company in terms of the Business Transfer Agreement for divestment of Its Electrical Si Automation (E&A) business to Schneider Electric India Private Limited (a) accrued further sale consideration on fulfilment of relevant covenants (b) updated financial estimates of post-transaction closing adjustments. The Company expects final closure of the divestment of E&A business in the quarter ending 31 March 2021.
The consolidated order book of the Group stood at a record Rs 331,061 crore as at 31 December 2020, registering a robust growth of 9% over the March 2020 level.
During FY 2022, the Company sold its digital transformation business, incubated and operated as L&T NxT, to Mindtree Limited, a listed subsidiary of the Company, for a consideration of Rs 198 crore.
In year 2022, the Board of Directors of the Company had approved a Scheme for Amalgamation of L&T Hydrocarbon Engineering Limited (LTHE), a wholly owned subsidiary, with the Company, which was approved by the Hon'ble National Company Law Tribunal, Mumbai Bench and became effective from 7th February 2022, with the Appointed date, 1st April 2021. The rationale for the Scheme was to create cost effectiveness by integrating the Hydrocarbon business of LTHE and Engineering, Projects and Construction (EPC) power business of the Company. Subsequently all the subsidiaries of LTHE have become direct subsidiaries of the Company.
During the year 2021-22, the Company acquired 6,82,25,347 equity shares of L&T Finance Holdings Limited (LTFHL) and presently holds 163,92,29,920 equity shares representing 66.26% of the total share capital of LTFHL.
In year 2022, L&T Uttaranchal Hydropower Limited (L&T UHPL) ceased to be a subsidiary of the Company pursuant to sale of entire stake by the Company and L&T Power Development Limited (a wholly owned subsidiary) to ReNew Power Services Private Limited for a total consideration of Rs 1,003 crore. The Company held 142,68,50,000 preference shares in L&T UHPL which were entirely sold to
ReNew.
Pursuant to an order passed by the National Company Law Tribunal, Mumbai bench, the equity share capital of L&T Seawoods Limited, a wholly owned subsidiary, was reduced to the extent of 30,00,00,000 equity shares aggregating to Rs 300 crore by way of return of surplus cash on 7th April 2022.
Larsen & Toubro Ltd
Chairman Speech
Dear Shareholders
Robust self-belief and resilience are the key to success in times of
uncertainty and challenge. This spirit has helped India contend with an unprecedented
pandemic and, in rapid succession, a war in Europe with its attendant disruptions. It is
indeed creditable that amidst these macroeconomic and geopolitical upheavals, India has
managed to stay the course in its quest for growth. Your Company has also performed well
while operating within the given constraints. At this juncture, we wish to reiterate our
commitment to advance the interests of our country and express our solidarity with the
nation and its leadership.
Business Scenario
FY 2021-22 was an economic roller coaster with the impact of recurring
bouts of COVID-19 and global disquiet counter-balanced to some extent by Country's
economic resilience. Regular government spending throughout the year complemented by
liquidity easing measures by the Reserve Bank of India prevented the risk of an economic
meltdown and helped bolster the confidence of households and private companies.
An improved borrowing programme for the Centre and State Governments
also meant that the spending proposals envisaged in the Budget continued unhindered. Most
of the high frequency, mobility and service indicators gained momentum as the easing of
pandemic curbs saw demand regaining lost ground before geopolitical tensions erupted to
set the clock back once again.
After years of stagnation, India witnessed a pick-up in exports in FY
2021-22. Consequently, the economy expanded aRs 8.7% in real GDP terms vis-a-vis a
contraction in the previous financial year.
India is expected to post top quartile growth among emerging nations in
the medium term. Challenges hovering on the horizon include runaway oil prices, supply
chain disruptions and the US rate hikes affecting capital flows into India. Despite these
roadblocks, however, our view is that the bold structural reforms carried out by the
Government in the last couple of years will pave the way for improved quality of growth. A
slew of incentive schemes launched by the Government should stimulate manufacturing and
exports in our run up to becoming a USD 5 trillion economy. Leveraging its expertise in
high- tech manufacturing, your Company is well-positioned to take advantage of the
opportunities as they unfold.
Driving Growth
India's FY 2022-23 Budget focusses on consolidation with a capex-driven
infrastructure thrust where the Government will do the heavy lifting and the private
sector steps in to play its part. Most of the initiatives undertaken, ranging from NIP to
NMP, creation of DFI, the PLI scheme, the public procurement initiatives as well as the
renewed PPP models, have an overarching infrastructure focus. Clearly, they are directed
to coax capex back into play. We hope that a reasonably stable domestic macro environment
and an equable socio-economic climate will enable the Government to realise the vision
envisaged in the NIP blueprint. Public and private investments working in tandem should
also resuscitate India's Investment / GDP ratio which has been stagnant.
Since infrastructure investments serve the dual purpose of driving
productivity and generating employment, we believe the underlying macro drivers for growth
remain intact. Your Company is poised to capitalise on these opportunities as they emerge.
Internationally, we expect the GCC economy to remain buoyant with a
strong capex fuelled by prevailing oil prices. Infrastructure and hydrocarbon
opportunities are likely to open up in the African sub-continent on the back of enhanced
bi-lateral/multi-lateral funding support.
Group Performance Review
In a year marked by several disruptions, your Company turned in a
creditable performance and registered appreciable recovery across key performance
parameters. Our Order Inflow for the year at ^ 192,997 crore was achieved on the back of
major domestic and international order wins in Hydrocarbon and Infrastructure. Although
the domestic ordering environment was a shade below expectations, the international
environment, especially in the Middle East, is a cause for cheer.
The L&T Group recorded revenues of ^1 56,521 crore during FY
2021-22, registering a growth of 15%. The growth was aided by improved project execution
and manufacturing activity further complemented by a strong pick-up in the services
businesses amidst a volatile macro backdrop.
As on March 31, 2022, the Order Book at Rs 357,595 crore is large,
growing and diversified. The Infrastructure segment has a 73% share of the consolidated
Order Book. The Order Book registered a growth of 9%, on the back of orders secured in
projects businesses.
A healthy Operational Profit After Tax at Rs 8,572 crore, representing
a growth of 23% over the previous year. Thanks to robust operational cash flows, our
capital employed metrics have reported progress, leading in turn to improved return ratios
for the Group. The Group has repaid borrowings during the year resulting in improved
Debt-to-Equity ratios.
Your Company continues to focus on shareholder value creation by
divesting non-core assets, capturing cost efficiencies and leveraging technology for
productivity gains. Our strategically diversified business portfolio, geographical
dispersion, robust balance sheet and strong Order Book are reliable signposts pointing to
a brighter future. Further, the Company's proven execution strengths and committed
workforce are helping it to seamlessly transition to a more digitally evolved work
environment. This should enable the business to thrive once the immediate challenges posed
by pandemic and the geopolitical uncertainties are behind us.
It gives me great pleasure to inform you that the Board of Directors
has recommended a final dividend of Rs 22 per share for FY 2021-22.
International Business
The Company's policy of aiming for wider geographic dispersal continues
to yield positive results while de-risking exposure. While the Middle East region remains
an area of focus, your Company has expanded its outreach to several countries in Africa as
well as South East Asia. Currently, the Middle East region constitutes 76% of the
international Order Book of Rs 95,227 crore.
Strategic Plan
Our Strategic Five-year Plan christened 'Lakshya 2026', continues to
steer your Company's growth. Simultaneously, it also responds with agility to flux in the
business environment. This year we launched Lakshya 2026, built around the following
themes:
• Value accretive growth in our current business portfolio
• Exit from non-core businesses
• Developing innovative business offerings to ride the energy
transition wave
• Scaling up Digital and e-commerce businesses
• Business sustainability through sharper focus on ESG and
shareholder value creation
We are targeting Group Revenues of Rs 2.7 lakh crore and ROE of 18%+ by
FY 2025-26
Training and Talent Management
People are at the heart of our successes and our continuing endeavours
to do better. Our HR policies are crafted to ensure professional growth while contributing
to the employee's sense of pride and well-being. We also leverage technologies as we
anticipate and adapt to changing requirements. For instance, our digitalisation
initiatives enabled us to provide learning experience to our employees, even as they
worked remotely during multiple lockdowns.
Sustainable Development
I am very happy to inform you that this is the maiden issue of our
Integrated Annual Report, bringing together our financial and sustainability performance
across multiple parameters. While the world seems to have suddenly woken up to the perils
of climate change, for your Company sustainability is nothing new. We have been at the
forefront of many sustainability initiatives long before they were mandated by law. Since
2008, we have maintained an annual reporting cycle for our sustainability performance.
These reports are accessible on the Company's website.
Your Company has set for itself a Water Neutrality and Carbon Net Zero
target of 2035 and 2040 respectively. We are already present in EPC Solar and Water space
and are now actively looking at expanding our footprint in Green Hydrogen and Energy
Storage. With more and more countries signing up for time-bound zero emission targets,
lucrative business opportunities should emerge for your company in green hydrogen, storage
solutions, renewables and the world of data infrastructure.
With regard to governance, the Company's core values pivot around the
principles of independence, transparency, accountability, responsibility, compliance,
ethics and trust. We will continue to uphold the value systems which have been the
traditional hallmark of Larsen & Toubro for over eight decades.
As stated in the past, I wish to reiterate that our defence business
does not manufacture explosives or ammunition of any kind, including cluster munitions or
anti-personnel landmines or nuclear weapons or components for such munitions. The business
also does not customise any delivery systems for such munitions.
Outlook
We live in an age of unpredictability. Just when it appeared that the
world had come to terms with the pandemic and that the worst was behind us, war broke out
in Europe, dashing hopes of achieving the stability essential for growth. In the
interdependent world we live in, conflagrations are no longer confined to the boundaries
of the combatant countries. This has disrupted the global supply chains and triggered an
alarming spike in prices. The consensus view is that prices of various commodities would
remain elevated in the near term.
Amid all this, there is good news on the technology front.
Paradoxically, it took a pandemic to open our eyes to the latent benefits of digital
technologies. These technologies are irrevocably changing the way we work and interact
with each other. Also, the IT spends are possibly the only deflationary force in today's
inflationary world. Another positive result has been a heightened awareness of
sustainability and a more rigorous emphasis on Environment Protection, Social
Responsibility and Governance frameworks.
Conclusion
I would like to thank our employees, our customers, supply chain
partners and the Government for their contribution, directly and indirectly, to our
growth. I also thank my fellow Board Members for their invaluable support in guiding the
Company through turbulent times.
My special thanks to all our shareholders for the trust you have
reposed in us. You remain an invaluable pillar of strength, and I look forward to your
continued support in our journey towards setting higher levels of excellence.
My heartfelt greetings to you all as India celebrates 'Aazadi ka Amrit
Mahotsav'.
Jai Hind!
Larsen & Toubro Ltd
Company History
Larsen & Toubro Limited is a major technology, engineering, construction, manufacturing and financial services conglomerate, with global operations. The Company addresses critical needs in key sectors like Hydrocarbon, Infrastructure, Power, Process Industries and Defence for their customers in over 50 countries around the world. The Company's manufacturing footprint extends across eight countries in addition to India.
The Company is a major technology, engineering, construction, manufacturing and financial services conglomerate, with global operations. The company is one of the largest and most respected companies in India's private sector. The company operates in three segments comprising of Engineering & Construction Segment, Electrical & Electronics segment, Machinery & Industrial Products, and others.
The company's Engineering, Construction & Contracts Division (ECCD) undertakes engineering, design and construction of infrastructure, buildings, factories, water supply, and metallurgical & material handling projects covering civil, mechanical, electrical and instrumentation engineering disciplines. Their Engineering & Construction Division designs, engineering and executes projects for hydrocarbon sector with front-end design. Its heavy engineering division is organized into two independent companies: Heavy Engineering Independent Company and Ship Building Independent Company. Their Electrical & Electronics division comprises Electrical and Automation Independent Company and Medical Equipment and Systems business.
L&T has an international presence, with a global spread of offices. A thrust on international business has seen overseas earnings grow significantly. It continues to grow its overseas manufacturing footprint, with facilities in China and the Gulf region. The company's businesses are supported by a wide marketing and distribution network, and have established a reputation for strong customer support.
Larsen & Toubro Ltd was incorporated in the year 1946 as a private limited company. Earlier, the company was established as a partnership firm founded by two Danish engineers Henning Holk Larsen with Soren Kristian Toubro im Mumbai. In December 1950, the company became a Public Company with a paid-up capital of Rs.2 million. They executed prestigious orders during this period which includes the Amul Dairy at Anand and Blast Furnaces at Rourkela Steel Plant.
During the year 1981-82, the company acquired 2 bulk shipping carriers from Japan. During the year 1983-84, they started one cement plant with capacity of 1 MTPA at Maharashtra. In the year 1997, the company formed a joint venture company with Deere Pvt Ltd to manufacture agricultural tractors namely L&T-John Deere Pvt Ltd. In April 1, 2003, the company transferred their cement business to Ultra Tech Cement Ltd.
The company received a host of awards, medals and trophies for their continuous efforts. They received Environmental Excellence Gold award from Greentech Foundation during the years 2003-04 and 2004-05. Engineering Export Promotion Council (EEPC) offered a trophy for high exports. The Ministry of Power conferred the first prize in National Energy Conservation for the year 2005.
In July 2005, the company approved the divestment of their stake in L&T-John Deere Pvt Ltd. In August 2005, the company entered into a MoU with DatarSwitchgear Ltd (DSL) to merger the company with L&T. As on October 2005, the company totally exited from the packaging business by sale of their Glass Containers Business to ACE Glass. In the year 2006, the company amalgamated two of their own folds, the L&T Power Investments Pvt Ltd (LTPL) amalgamated with India Infrastructure Developers Ltd (IIDL).
During the year 2006-07, A Wall Street Journal survey featured L & T among Asia's 'Most Admired Companies' and ranked the company No.1 for quality of products and for overall reputation. In April 2007, the company and theirs associate Audco India Ltd (AIL) invested Rs 35 crore in the Coimbatore (TN) switchboard and valve unit. Larsen & Toubro made a tie up with Japan's Toshiba Corporation and Mitsubishi Heavy Industries for setting up manufacturing facilities for super-critical turbines and boilers used in coal-fired power generation plants.
During the year 2008-09, the company transferred their entire 100% stake in L&T Infrastructure Finance Company Ltd, L&T Finance Ltd and India Infrastructure Developers Ltd to L&T Capital Holdings Ltd (LTCHL). In March 31, 2009, the company acquired 50% stake in L&T-Demag Plastics Machinery Ltd from the joint venture partner Sumitomo (SHI) Demag Plastics Machinery GmbH. Accordingly, L&T-Demag Plastics Machinery Ltd became a wholly owned subsidiary of the company with effect from March 31, 2009.
In April 2010, the company and Rolls-Royce, the global power systems company, signed an MoU for cooperation to effectively address the projected need for light water reactors in India and internationally. Also, the company won a critical offshore platform contract from Gujarat State Petroleum Corporation (GSPC) valued at Rs 1060 crore. In May 2010, the company and Howden signed a joint venture to design, engineer, manufacture and supply axial fans and air preheaters to Indian thermal power plants ranging between 100 MW to 1200 MW. The joint venture will invest around Rs 100 crore for setting up of the industrial facility and related infrastructure. The manufacturing unit will be setup in Hazira, Gujarat.
In June 2010, the company secured orders aggregating Rs 747 crore from various customers like Coal India, Indiabulls Power Ltd and Hindalco Industries Ltd. Also, they secured orders aggregating to Rs 1440 crore for the construction of residential towers, township and factory building. The Thermal Power Plant Construction business unit secured two orders aggregating Rs 827 crore from GVK Power for their Gautami Combined Cycle Power Plant Expansion and from SEPCO-I for Talwandi Sabo Power Plant in Punjab.
In July 2010, the company won an offshore rig refurbishment contract from Oil and Natural Gas Corporation valued at Rs 376 crore. In August 2010, the company's Building & Factories Operating Company (B&F-OC), secured orders aggregating to Rs 10.25 billion for the construction of two hospital building, residential projects in Mumbai and a cement plant from a major cement manufacturer. Also, the company received two projects worth Rs 1195 crore from ONGC to set up additional processing units at its gas processing complexes at Hazira and Uran. In September 2010, the company and Befula Investments (South Africa) signed a shareholders agreement to incorporate Larsen & Toubro T&D SA (Pty) Ltd in South Africa to capitalize on the power transmission and distribution opportunities in South Africa.
In October 2010, the company received an order valued at Rs 1449 crore from DB Power Ltd promoted by the Bhaskar Group. In December 2010, they secured two orders amounting Rs 415 crore from Hindalco and Sepco-I. The Hindalco order worth Rs 253 crores is for carrying out structural steel works for the 6x150 MW captive power plant in Orissa. The Sepco-I order valued at Rs 162 crore is for the erection of boilers for their 2x660 MW Talwandi Sabo Power plant, developed by Sterlite Energy Ltd in Punjab.
In January 2011, the company secured orders aggregating Rs 1103 crore from various power plant developers for construction of merry go round systems, construction of dedicated railway lines to link power plant sites to the main line rail network. The company and Kobe Steel Ltd entered into a joint venture (JV) for the manufacture of internal mixers and twin screw rollerhead extruders for the tyre & rubber industry for global markets, including India. The JV aims to provide customers with products for the tyre industry. In February 2011, the company secured an order valued over Rs 1,100 crore from Gujarat State Electricity Corporation Ltd (GSECL), a government of Gujarat company, to set up a 1 x 375 MW gas based power plant at Dhuvaran, near Baroda in Gujarat, on EPC basis.
In May 2011, the company received an order valued over Rs 3500 crore from PPN Power Generating Company Ltd based in Chennai, for setting up a 3 x 360 MW gas based power plant at Village Pillaiperumalnallur in Nagpattinam District of Tamil Nadu State, on EPC basis. They won a process platform contract from Gujarat State Corporation (GSPC) valued at Rs 14.50 billion. In July 2011, the company bagged a major international EPC order valued at Rs 1210 crore from Qatar General Electricity & Water Corporation (KAHRAMAA) for supply and construction of thirteen extra high voltage (EHV) substations in Qatar.
In August 2011, the company bagged international orders valued at USD 889 million in the hydrocarbon sector. One order is from Abu Dhabi Gas Industries Limited (GASCO) for its Habshan-Ruwais-Shuweihat (52'/48' dia) Gas Pipeline Project. Valued at around USD 189 million, it involves EPC installation & commissioning of 123 KM of the pipeline to be commissioned in 24 to 26 months. The other order is a USD 450 million EPCI project awarded to L&T Hydrocarbon's Upstream Business Group from ADMA-OPCO, a subsidiary of ADNOC and a major producer of Oil & Gas for the UAE.
In August 2011, the company secured new orders worth Rs 1340 crore in the Building & Factories segment for the construction of commercial & residential buildings including add-on orders from ongoing projects. In September 2011, they received a project order valued around Rs 700 crore from the Petroleum Development Oman LLC (PDO). The order is for setting up a green field project planned to treat an average of 3 MMSCMD of gas. In November 2011, they bagged new orders worth Rs 1629 crore in the building and factories segment.
In December 2011, the company bagged a major order valued at Rs 21.64 billion in their Infrastructure Segment from GMR Infrastructure. The order is for construction of stretches consisting of six laning of Kishangarh Udaipur Ahmedabad Highway. The development would be executed on EPC (Engineering, Procurement & Construction) basis.
In 2012 Larsen and Toubro's financial arm L&T Finance Holdings Limited (LTFH) has entered into the housing finance business by acquiring Indo Pacific Housing Finance Ltd (IPHF), a small sized housing finance company. Larsen & Toubro (L&T) also bagged Rs 1,937 crore order for 4-laning of a major portion of Shivpuri-Dewas section of NH-3 in Madhya Pradesh from GVK Group. The company and Samsung Techwin have joined hands to cooperate in the Indian Army's Tracked Self Propelled Artillery programme. L&T and Nexter Systems join hands for Indian army artillery programme. L&T Joint Venture firm bags contract from Sadara Chemical Company. L&T Construction Secures Orders Valued at over Rs 2592 Crore, Rs 2040 crores and Rs 2008 crore from various business segments. L&T Wins Rs. 749 Crore Contract from ONGC for 4 Wellhead Platforms. L&T Wins Prestigious Order for Manufacture of Cryostat for International Fusion Energy Project. L&T led Joint Venture wins Rs. 1252 Cr Delhi Metro Contract. Larsen & Toubro bags $250mn EPC contract in Ras Laffan, Qatar. L&T bags Rs 781 cr contract from ONGC
In 2013 L&T Completes Acquisition of Audco India Ltd. L&T IDPL bags Rs. 1293 crore road project in Odisha. L&T Group Company Wins Saudi Aramco Contract. L&T Ranked Asia's 2nd Most Sustainable Company in Industrial Sector. L&T Technology Services Wins Frost & Sullivan Excellence Award. L&T Wins Golden Peacock Award for Excellence in Corporate Governance. L&T Power Wins National Energy Conservation Award. L&T Wins ICICI Foundation-CNBC TV 18 Inclusive India' Award. L&T Construction also Wins Rs.1630 Crores Expressway Project in Uttar Pradesh. L&T Wins Saudi Aramco Contract. L&T Wins Rs 5100 Crore Supercritical Power Plant Order from MP State Utility. L&T Construction Wins Rs. 4510 Crs Doha Metro Project
In 2015 L&T Won Golden Peacock Award for Risk Management', Award for Excellence in Power Project Execution from the Central Board and Good Corporate Citizen Award. L&T Construction Commissions India's first 765kV Gas Insulated Substation. L&T secures Rs 5,580 cr power plant order from NTPC. L&T also Signs MoU with AREVA for Jaitapur Nuclear Power Project. L&T opens new service centre in Nagpur.
At the time of announcement of Q4 March 2015 results on 30 May 2015, L&T said that the company's consolidated order inflow surged 39% on year-on-year basis at Rs 47582 crore in Q4 March 2015. On 3 July 2015, L&T announced that it has successfully flagged off India's first Nuclear 700 MWe Steam Generator for Kakrapar nuclear power plant in Gujarat. At the time of announcement of Q1 June 2015 results on 31 July 2015, L&T said that the company won new orders worth Rs 26376 crore at consolidated level in Q1 June 2015.
On 21 September 2015, Larsen & Toubro announced that it has sold 8.52 crore equity shares of its subsidiary L&T Finance Holdings representing 4.95% stake in the company on the National Stock Exchange at Rs 70 per share. At the time of announcement of Q2 September 2015 results on 30 October 2015, L&T said that the company won new orders worth Rs 28620 crore at consolidated level in Q2 September 2015.
On 9 November 2015, Larsen & Toubro announced that it has entered into an in-principle agreement for strategic sale of Kattupalli port in Tamil Nadu to Adani Kattupalli Ports Private Limited (AKPPL), a subsidiary of Adani Ports and Special Economic Zone (APSEZ). At the time of announcement of Q3 December 2015 results on 29 January 2016, L&T said that the company won new orders worth Rs 38528 crore at consolidated level in Q3 December 2015.
On 25 February 2016, L&T announced that its fully-owned subsidiary L&T Hydrocarbon Engineering Limited (LTHE) has signed a long-term agreement with McDermott International focused on subsea projects in deepwater segment emerging on the east coast of India. Under the agreement, LTHE and McDermott will develop a cost-effective approach which will utilize LTHE's state-of-the-art, strategically located Kattupalli facility near Chennai. It will be used for fabrication and setting up of a local spool base in India.
On 31 March 2016, L&T announced that it has sold its entire 89% stake in L&T Infocity Limited to Ace Urban Developers for total consideration of Rs 191 crore. L&T had promoted L&T Infocity Limited as a special purpose vehicle (SPV) in 1997 in partnership with Andhra Pradesh Infrastructure Investment Corporation to develop IT infrastructure in Andhra Pradesh. At the time of announcement of Q4 March 2016 results on 25 May 2016, L&T said that the company won new orders worth Rs 43334 crore at consolidated level in Q4 March 2016.
On 31 May 2016, L&T's wholly-owned subsidiary L&T Hydrocarbon Engineering (LTHE) announced a teaming agreement with Parsons Corporation to provide engineering and design solutions for onshore and offshore projects across the hydrocarbon, fertilizer, chemicals, and modular plant sectors. On 15 July 2016, L&T announced that it has decided to participate in the offer for sale of equity shares by way of initial public offering by its subsidiary L&T Technology Services. L&T proposes to sell up to 15% of the equity shares held in L&T Technology Services through the offer.
At the time of announcement of Q1 June 2016 results on 29 July 2016, L&T said that the company's consolidated order inflow rose 14% on year-on-year basis at Rs 29702 crore in Q1 June 2016. On 26 August 2016, L&T Group Chairman A.M. Naik said at the 71st Annual General Meeting of the company that L&T plans to achieve revenue of Rs 2 lakh crore (USD 30 billion at the prevailing exchange rates) by 2021 without compromising on profit margins and achieving an order inflow in excess of Rs 2.5 lakh crore per annum.
On 22 September 2016, Larsen & Toubro announced that it has won an order worth USD 99.7 million from Vietnam Border Guard for design and construction of high speed patrol vessels in India as well as for transfer of design and technology along with supply of equipment and material kits for construction of follow-on vessels at a Vietnam shipyard. It is the biggest export order given to a private Indian Shipyard till date.
On 4 October 2016, Larsen & Toubro announced that it has achieved synchronisation of the first 660 MW supercritical unit (Unit-5) of the 2x660 MW supercritical thermal power project at Chhabra in Rajasthan in record time of 42 months and four days from the date of Notice to Proceed.
On 14 October 2016, L&T announced that a consortium of the company and Sojitz Corp., Japan has won a major order worth Rs 3799 crore from the Dedicated Freight Corridor Corporation of India Ltd. (DFCCIL). This Design and Build Integrated Package involves the construction of Civil (Embankment, Structure, Tunnel), Track Works, Overhead Electrification, Traction Substations and Signaling & Telecommunication Works for double line electrified tracks with 2x25 kV AC, high rise Overhead Catenary System capable of operating at a maximum train speed of 100 Km/h, from Rewari to Dadri (128 Km).
On 20 October 2016, L&T announced the signing of a formal contract with the Department of Information & Technology, Maharashtra Government, under which Nagpur will be converted into the country's first large-scale integrated Smart City.
L&T-MHPS Boilers Private Limited (LMB), a joint venture of Larsen & Toubro Limited (L&T) and Mitsubishi Hitachi Power Systems Limited (MHPS), Japan, signed a Technology Licence Agreement with MHPS on 7 November 2016 for Selective Catalytic Reduction (SCR) systems. The technology licensing agreement is for design, engineering, manufacture, installation, commissioning, and sale of new boilers under BTG, EPC or SG packages or standalone SCR systems, and for existing and under construction boilers on exclusive basis in India.
On 8 November 2016, L&T announced that it has signed a long-term technical licence agreement with Chiyoda Corporation, Japan for its Flue Gas Desulphurisation (FGD) technology. The agreement grants L&T exclusive rights to undertake EPC of CT-121TM FGD Systems. At the time of announcement of Q2 September 2016 results on 22 November 2016, L&T said that the company's consolidated order inflow rose 11% on year-on-year basis at Rs 31119 crore in Q2 September 2016.
On 2 January 2017, L&T announced that it has bagged a project from Pune Municipal Corporation to convert Pune into a smart city as a part of Government of India's Smart City Mission. On the same day, L&T announced that its fully owned subsidiary L&T Hydrocarbon Engineering in consortium with EMAS CHIYODA Subsea, has won two awards involving Engineering, Procurement, Construction and Installation contracts from Saudi Arabian oil giant and biggest oil company in world, Saudi Aramco.
On 13 February 2017, L&T announced that the company has formed a joint venture with MBDA, a world leader in missile systems, to develop and supply missiles and missile systems to meet the growing potential requirements of the Indian armed forces. L&T will own 51% of the new joint venture company with MBDA owning the remaining 49% stake.
On 25 February 2017, L&T announced that its wholly owned subsidiary L&T Hydrocarbon Engineering (LTHE) has bagged an onshore EPC contract worth around Rs 1100 crore from Indian Oil Corporation Limited (IOCL) for setting up a 0.740 MMTPA Fluidised Cracking Unit (FCC) including LPG Treatment Facility at IOCL's Bongaigaon refinery in Assam.
On 28 February 2017, L&T announced that its wholly-owned subsidiary L&T Hydrocarbon Engineering (LTHE) has signed an Enterprise Framework Agreement (EFA) with Shell Global Solutions International B.V., for providing Engineering, Procurement and Construction Management (EPCM) services for Shell projects in the Middle East, South East Asia and India. The EFA is for a period of five years.
On 20 March 2017, L&T announced that its wholly-owned subsidiary L&T Hydrocarbon Engineering Limited (LTHE) has bagged an offshore contract valued at Rs 1656 crore for the Neelam Re-Development & B173AC Project from Oil & Natural Gas Corporation (ONGC). On 28 March 2017, L&T announced that the Buildings & Factories Business of L&T Construction has bagged a major design & build order worth Rs 2903 crore to re-develop Mumbai's century-old BDD Chawls for Maharashtra Housing and Area Development Authority (MHADA).
On 30 March 2017, L&T announced that its wholly-owned subsidiary L&T Hydrocarbon Engineering Limited has bagged orders totalling close to Rs 4000 crore in the International market. On 7 April 2017, L&T announced that it has commissioned gas turbines in open cycle for two large gas-based power projects in Bangladesh in quick succession during March 2017.
On 21 April 2017, Larsen & Toubro and Hanwha Techwin (HTW) of South Korea signed a contract for execution of the 155mm/ 52 Cal Tracked Self Propelled (SP) gun program for the Indian Army. On 12 May 2017, Larsen & Toubro announced that it has won a contract worth Rs 4500 crore for supply of 100 units of 155mm/ 52 calibre Tracked Self-Propelled gun systems to the Indian Army. It is the largest private sector defence order for artillery guns.
On 26 May 2017, L&T announced that its wholly-owned subsidiary L&T Hydrocarbon Engineering (LTHE) has signed a Memorandum of Agreement (MOA) with Institute of Chemical Technology (ICT) to build ethanol plants based on the fully indigenous technology developed by ICT for producing Second Generation Ethanol.
At the time of announcement of Q4 March 2017 results on 29 May 2017, L&T said its consolidated order inflow rose 9.6% on year-on-year basis to Rs 47289 crore in Q4 March 2017. On 20 June 2017, Larsen & Toubro announced the launch of a Floating Dock (FDN-2) designed and built for the Indian Navy at the company's greenfield shipyard at Kattupalli, near Chennai. This marks a significant achievement for L&T's Shipbuilding arm in Design, Construction and Project Management of Defence Vessels.
At the time of announcement of Q1 June 2017 results on 28 July 2017, L&T said that the company won new orders worth Rs 26352 crore at consolidated level in Q1 June 2017 in a challenging business environment. On 2 August 2017, Larsen & Toubro announced the bagging of a Rs 3375-crore major breakthrough order from Metro Express Limited which is owned by the Government of Mauritius to design and build an Integrated Light Rail-based Urban Transit System in Mauritius. The project will be fully funded through a Government of India grant and Line of Credit.
On 16 August 2017, L&T announced that it entered into a definitive agreement for the divestment of its entire stake in its wholly-owned subsidiary L&T Cutting Tools Limited to IMC International Metalworking Companies B.V, a company owned by Berkshire Hathaway Inc., for a total consideration of Rs 174.04 crore.
On 2 September 2017, L&T announced that its subsidiary Infrastructure Development Projects Limited (L&T IDPL) has filed an application with Securities and Exchange Board of India for registration of its proposed infrastructure investment trust, named IndInfravit Trust.
On 3 October 2017, Larsen & Toubro announced that it has completed the purchase of the entire remaining 26% stake held by Airbus Defence and Space GmbH (earlier known as EADS Deutschland GmbH) in L&T Cassidian, a joint venture between Larsen & Toubro and Airbus Defence and Space GmbH.
At the time of announcement of Q2 September 2017 results on 11 November 2017, L&T said that the company won new orders worth Rs 28732 crore at consolidated level in Q2 September 2017 amidst subdued business environment, policy uncertainties and delayed implementation.
On 1 January 2018, L&T announced that its wholly owned subsidiary L&T Hydrocarbon Engineering Limited (LTHE) has secured a major EPC contract for Crude Distillation and Vacuum Distillation Unit (CDU & VDU) from Hindustan Petroleum Corporation Limited, Visakhapatnam Refinery, and an extension to an ongoing contract for Reliance Industries Jamnagar, both adding to about Rs 2100 crore. On 2 January 2017, L&T announced that its construction division has won orders worth Rs 1454 crore across various business segments.
On 5 January 2018, L&T announced that its wholly-owned subsidiary L&T Hydrocarbon Engineering Limited (LTHE) has secured an offshore contract for Bassein Development 3 Well Platform & Pipeline Project' from Oil & Natural Gas Corporation (ONGC). The order is valued at approximately Rs 1483 crore. On 8 January 2018, L&T announced the Transportation Infrastructure and Water & Effluent Treatment businesses of L&T Construction have jointly bagged three EPC orders worth Rs 2265 crore from Andhra Pradesh Capital Region Development Authority (APCRDA).
At the time of announcement of Q3 December 2017 results on 31 January 2018, L&T said its consolidated order inflow jumped 38% on year-on-year basis to Rs 48130 crore in Q3 December 2017. Consolidated order book of the group stood at Rs 270727 crore as on 31 December 2017. The international order book constituted 25% of the total order book.
The board of directors of the company at a meeting held on 31 January 2018 approved subscription to equity shares offered by its subsidiary L&T Finance Holdings (LTFH) on a preferential basis up to an amount not exceeding Rs 2000 crore, subject to necessary approvals, including the approval of board of directors and shareholders of LTFH. The exact amount of the subscription would depend on the preferential issue that LTFH would be making to L&T.
During the FY2019, the company repaid long-term borrowings of USD 233 million (approx.Rs 1610 crore including secured debentures of Rs 400 crore). On the other hand, the company raised USD 100 million of foreign currency borrowings and Rs 90 Crore of Rupee Term Loan as fresh unsecured long-term borrowings for meeting business requirements and certain capital expenditure.
As at 31March 2019, the gross property, plant and equipment, investment property and other intangible assets including leased assets, stood at Rs 12,174.29 crore and the net property, plant and equipment, investment property and other intangible assets, including leased assets, at Rs 7,934.32 crore and spent capital expenditure during the year amounted to R 1,571.41 crore.
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 15 October 2018, on a proportionate basis by way of the tender offer route through the stock exchange mechanism at a price of Rs 1,475 per equity share, aggregating up to Rs 9,000 crore.
The company has entered into a share purchase agreement on 18 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.
Further the company, has acquired entire stake held by Tamil Nadu Industrial Development Corporation (TIDCO) in L&T Shipbuilding Limited on 10 April 2019. With this acquisition, L&T Shipbuilding Limited is now a wholly owned subsidiary of the Company.
Pursuant to an order dated 13 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 Rs 345 crore.
The Company has divested its entire stake in L&T Kobelco Machinery Private Limited, a subsidiary, to Kobe Steel, Ltd. on 17 April 2019.
As at 31 March 2019, L&T Group comprises 110 subsidiaries, 8 associates, 27 joint venture companies and 31 joint operations. L&T Group achieved order inflow of Rs 176834 crore during the year 2018-19, registering a growth of 15.6% over the previous year.
During the FY2019, the company received six British Sword of Honor awards and five-star certification from the British Safety Council, for third time in a row. The company's Eight projects won National Infrastructure & Construction Awards 2018. The company also 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.
The period leading up to the lockdown and the subsequent stoppage of all economic activity from 25th March, 2020 has adversely affected your Company's operations in late FY 2019-20 as well as the better part of Q1 FY 2020-21.
The total Order Book of R 303,857 crores as on 31March, 2020 grew by 4% over the previous year.
During the FY2020, on exercise of the conversion option of USD200 million 0.675% convertible bonds due in 2019, the Company has allotted 3,79,388 equity shares of Rs 2/- each against conversion of 7,970 FCCBs of the face value of US$ 1000 each. Remaining 1,92,030 Bonds of the face value of US$1000 each were redeemed/repaid.
The company repaid long-term borrowings of USD 492.03 million (approx. Rs 3,500 crore) and on the other hand the company raised USD 425 million of foreign currency borrowings for meeting business requirements and certain capital expenditure.
The Company has issued and allotted on private placement basis, Unsecured, Rated, Listed, Redeemable Non-convertible Debentures (NCDs) aggregating to Rs 5900 crore during the financial year 2019-20.
The Company has issued Commercial Papers amounting to Rs 4,845 Crore during the FY 2019-20.
As at 31 March 2020, the gross property, plant and equipment, investment property and other intangible assets including leased assets, stood at Rs 13,559.73 crore and the net property, plant and equipment, investment property and other intangible assets, including leased assets, at Rs 8,637.58 crore. The company spent towards Capital Expenditure during the year amounted to Rs 1,370.51 crore.
The Company had acquired the entire stake held by Tamil Nadu Industrial Development Corporation (TIDCO) in L&T Shipbuilding Limited thereby making it a wholly owned subsidiary of the Company. Subsequently, pursuant to the National Company Law Tribunal (Mumbai & Chennai bench) approval for the Scheme of Amalgamation, L&T Shipbuilding Limited has merged with the Company (appointed date 01 April 2019 and effective date 18 May 2020).
The Company acquired 3,27,60,229 equity shares of Mindtree Limited, pursuant to the Share Purchase Agreement. Further, 164,42,134 equity shares of Mindtree Limited have been acquired in the open market and 5,13,25,371 equity shares have been acquired through open offer.
Pursuant to the approval of the Composite Scheme of Amalgamation & Arrangement between L&T Realty Limited (LTR), L&T Construction Equipment Limited (LTCEL) and L&T Construction Machinery Limited (LTCML) by National Company Law Tribunal, Mumbai bench (appointed date 1st April 2018 and effective date 17 May 2020), LTR has been amalgamated into LTCEL and the manufacturing business of LTCEL has been demerged into LTCML. As consideration towards this amalgamation and demerger, the Company has been allotted 19,91,32,091 equity shares of Rs 10 each by L&T Construction Machinery Limited and 4,71,600 equity shares of Rs 10 each and 64,83,00,000 12% non-convertible preference shares of Rs 10 each by L&T Construction Equipment Limited.
Pursuant to the amendment agreement entered by the Company with Canadian Pension Plan Investment Board (CCPIB), L&T Infrastructure Development Projects Limited, (L&T IDPL), a wholly owned subsidiary of the Company, has allotted 30,84,62,468 equity shares to CCPIB India Private Holdings Inc. Accordingly, the Company presently holds 51% in L&T IDPL.
During March 2020, the COVID pandemic increased rapidly forcing Governments of most countries to enforce a lockdown of all activities. Heeding to the various guidelines issued in India by the Central and State Governments and abroad by various agencies on the Covid-19 pandemic, all establishments, offices & factories of the Company had shut down operations from 25 March 2020.
For the quarter ended 31 March 2020, the impact due to COVID 19 on your Company's revenues and net profits was approximately Rs 1800 crore and Rs 400 crore respectively.
The Company resumed partial service of operations from 14 April 2020, after implementation of standard protocols in line with the guidelines prescribed.
During the FY2020, the company has secured major orders such as CIDCO Housing Project at Navi Mumbai, One of the e largest greenfield airports in India at Navi Mumbai and Mandarin Oriental Hotel, Muscat in Oman.
The business was conferred several prestigious awards during FY2020 including British Safety Council's Sword of Honour, for the fourth consecutive year, with ten of its projects securing the award, The Royal Society for the Prevention of Accidents (UK)' Gold Awards for Occupational Health & Safety for eleven projects and 18 National Safety Council awards in various categories.
During the quarter ended 31 December 2020, the Company in terms of the Business Transfer Agreement for divestment of Its Electrical Si Automation (E&A) business to Schneider Electric India Private Limited (a) accrued further sale consideration on fulfilment of relevant covenants (b) updated financial estimates of post-transaction closing adjustments. The Company expects final closure of the divestment of E&A business in the quarter ending 31 March 2021.
The consolidated order book of the Group stood at a record Rs 331,061 crore as at 31 December 2020, registering a robust growth of 9% over the March 2020 level.
During FY 2022, the Company sold its digital transformation business, incubated and operated as L&T NxT, to Mindtree Limited, a listed subsidiary of the Company, for a consideration of Rs 198 crore.
In year 2022, the Board of Directors of the Company had approved a Scheme for Amalgamation of L&T Hydrocarbon Engineering Limited (LTHE), a wholly owned subsidiary, with the Company, which was approved by the Hon'ble National Company Law Tribunal, Mumbai Bench and became effective from 7th February 2022, with the Appointed date, 1st April 2021. The rationale for the Scheme was to create cost effectiveness by integrating the Hydrocarbon business of LTHE and Engineering, Projects and Construction (EPC) power business of the Company. Subsequently all the subsidiaries of LTHE have become direct subsidiaries of the Company.
During the year 2021-22, the Company acquired 6,82,25,347 equity shares of L&T Finance Holdings Limited (LTFHL) and presently holds 163,92,29,920 equity shares representing 66.26% of the total share capital of LTFHL.
In year 2022, L&T Uttaranchal Hydropower Limited (L&T UHPL) ceased to be a subsidiary of the Company pursuant to sale of entire stake by the Company and L&T Power Development Limited (a wholly owned subsidiary) to ReNew Power Services Private Limited for a total consideration of Rs 1,003 crore. The Company held 142,68,50,000 preference shares in L&T UHPL which were entirely sold to
ReNew.
Pursuant to an order passed by the National Company Law Tribunal, Mumbai bench, the equity share capital of L&T Seawoods Limited, a wholly owned subsidiary, was reduced to the extent of 30,00,00,000 equity shares aggregating to Rs 300 crore by way of return of surplus cash on 7th April 2022.
Larsen & Toubro Ltd
Directors Reports
Dear Members,
The Directors have pleasure in presenting their 77th Annual Report and
Audited Financial Statements for the year ended 31st March 2022.
FINANCIAL RESULTS:
Rs crore
| Particulars |
2021-22 |
2020-21 |
| Profit before depreciation, exceptional items and tax |
10913.91 |
9288.06 |
| Less: Depreciation, amortization, impairment and obsolescence |
1172.50 |
1150.68 |
| Profit before exceptional items and tax |
9741.41 |
8137.38 |
| Add: Exceptional Items |
290.06 |
(2818.65) |
| Profit before tax |
10031.47 |
5318.73 |
| Less: Provision for tax |
2152.02 |
2171.42 |
| Profit for the period from continuing operations |
7879.45 |
3147.31 |
| Profit before tax from discontinued operations |
- |
11199.23 |
| Less: Tax expense of discontinued operations |
- |
2548.75 |
| Net profit after tax from discontinued operations |
- |
8650.48 |
| Net profit after tax from continuing operations and
discontinued operations |
7879.45 |
1 1797.79 |
| Add: Balance brought forward from the previous year |
25722.05 |
16957.17 |
| Add: Change on account of business combination |
- |
838.62 |
| Less: Dividend paid for the previous year |
2528.38 |
1123.23 |
| Less: Interim dividend paid during the year |
- |
2527.66 |
| Add: Gain on remeasurement of the net defined benefits plans |
58.02 |
39.36 |
| Less: Capital redemption reserve |
- |
260.00 |
| Balance to be carried forward |
31131.14 |
25722.05 |
PERFORMANCE OF THE COMPANY:
The total income for the financial year under review was Rs 1,04,613.06
crore as against Rs 90,61 5.77 crore for the previous financial year, registering an
increase of 15.45%. The profit before tax from continuing operations including exceptional
items was Rs 10,031.47 crore for the financial year under review as against Rs 5,318.73
crore for the previous financial year. The profit after tax from continuing operations
including exceptional items was Rs 7,879.45 crore for the financial year under review as
against Rs 3,147.31 crore for the previous financial year, registering an increase of 1
50.36%.
AMOUNT TO BE CARRIED TO GENERAL RESERVE:
The Company has not transferred any amount to general reserve during
the current financial year.
DIVIDEND:
The Directors recommend payment of dividend of Rs 22/- (1,100%) per
equity share of Rs 2/- each on the share capital amounting to Rs 3,091.06 crore.
The Dividend payment 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 and Disclosure Requirements)
Regulations, 2015.
The Policy is uploaded on the Company's website at
https://www.larsentoubro.com/corporate/about-lt-group/corporate-policies/.
CAPITAL AND FINANCE:
During the year under review, the Company allotted 473,826 equity
shares of Rs 2/- each upon exercise of stock options by eligible employees under the
Employee Stock Option Schemes.
The Company's Authorized Capital increased from Rs 5,025 crore to Rs
8,037 crore pursuant to amalgamation of L&T Hydrocarbon Engineering Limited with the
Company vide order dated 28th January 2022 passed by Hon'ble National Company Law
Tribunal, Mumbai bench.
During the year, the Company repaid Non-convertible Debentures (NCDs)
of Rs 450 crore and short-term External Commercial Borrowings (ECB) of USD 100 million as
per the repayment schedule.
The Company has exercised the first call on the partly paid up
Debentures issued in the FY 2021 and raised Rs 450 crore (Rs 2.5 lakh each on 18,000
debentures) during FY 2022. The funds raised through issuance of NCDs have been utilized
for repayment of existing maturing NCDs.
The Company has issued Commercial Papers amounting to Rs 5,800 crore
during FY 2022. As on date, the outstanding amount of Commercial Papers is Rs 2,000 crore.
The Company has not defaulted on payment of any dues to the financial
lenders.
The Company's borrowing programmes have received the highest credit
ratings from CRISIL, ICRA and India Ratings. The details of the same are given on page 313
in Annexure 'B' - Report on Corporate Governance forming part of this Board Report and is
also available on the website of the Company.
SALE OF DIGITAL BUSINESS (L&T NxT):
During FY 2022, the Company sold its digital transformation business,
incubated and operated as L&T NxT, to Mindtree Limited, a listed subsidiary of the
Company, for a consideration of Rs 198 crore.
SCHEME OF ARRANGEMENT BETWEEN THE COMPANY AND L&T HYDROCARBON
ENGINEERING LIMITED:
The Board of Directors of the Company had approved a Scheme for
Amalgamation of L&T Hydrocarbon Engineering Limited (LTHE), a wholly owned subsidiary,
with the Company. The rationale for the Scheme was to create cost effectiveness by
integrating the Hydrocarbon business of LTHE and Engineering, Projects and Construction
(EPC) power business of the Company.
The Scheme of Arrangement (the "Scheme") was approved by the
Hon'ble National Company Law Tribunal, Mumbai Bench and became effective from 7th February
2022. The Appointed date for the Scheme is 1st April 2021.
Subsequently all the subsidiaries of LTHE have become direct
subsidiaries of the Company.
AMALGAMATION OF MINDTREE LIMITED WITH LARSEN & TOUBRO INFOTECH
LIMITED:
Subsequent to the year under review, the Board of Directors of Mindtree
Limited (MT) and Larsen & Toubro Infotech Limited (LTI), listed subsidiaries of the
Company, have approved a Scheme of Amalgamation of MT with LTI. The said scheme is subject
to approval of the Shareholders and creditors of these subsidiaries and the approval of
applicable regulators and the Hon'ble National Company Law Tribunals having jurisdiction
over these subsidiary companies.
CAPITAL EXPENDITURE:
As aRs 31st March 2022, the gross value of property, plant and
equipment, investment property and other intangible assets including leased assets, were
at Rs 16,837.38 crore and the net value of property, plant and equipment, investment
property and other intangible assets, including leased assets, were at Rs 9,695.93 crore.
Capital Expenditure during the year amounted to Rs 1,410.29 crore.
DEPOSITS:
During the year under review, the Company has not accepted deposits
from the public falling within the ambit of section 73 of the Companies Act, 2013 and the
rules framed thereunder, and the requisite returns have been filed. The Company does not
have any unclaimed deposits as of date.
SUBSIDIARY / ASSOCIATE / JOINT VENTURE COMPANIES:
During the year under review, the Company acquired 6,82,25,347 equity
shares of L&T Finance Holdings Limited (LTFHL) and presently holds 163,92,29,920
equity shares representing 66.26% of the total share capital of LTFHL.
L&T Uttaranchal Hydropower Limited (L&T UHPL) ceased to be a
subsidiary of the Company pursuant to the sale of entire stake by the Company and L&T
Power Development Limited (a wholly owned subsidiary) to ReNew Power Services Private
Limited (ReNew) for a total consideration of Rs 1,003 crore. The Company held
142,68,50,000 preference shares in L&T UHPL which were entirely sold to ReNew.
Kesun Iron and Steel Company Private Limited has applied to the
Ministry of Corporate Affairs for strike off under the provisions of Companies Act, 2013
on 15th December 2021. The approval is awaited.
Pursuant to an order passed by the National Company Law Tribunal,
Mumbai bench, the equity share capital of L&T Seawoods Limited, a wholly owned
subsidiary, was reduced to the extent of 30,00,00,000 equity shares aggregating to Rs 300
crore by way of return of surplus cash on 7th April 2022.
A statement containing the salient features of the financial statement
of subsidiary / associate / joint venture companies and their contribution to the overall
performance of the Company is provided on pages 611 to 622 of this Annual Report.
The Company has formulated a policy on identification of material
subsidiaries in line with Regulation 16(c) of the SEBI (Listing Obligations and Disclosure
Requirements)
Regulations, 2015 and the same is placed on the Company's website at
https://www.larsentoubro.com/ corporate/about-lt-group/corporate-policies/. The Company
does not have any material subsidiaries as on the date of this report.
PARTICULARS OF LOANS GIVEN, INVESTMENTS MADE, GUARANTEES GIVEN OR
SECURITY PROVIDED BY THE COMPANY:
The Company has disclosed the full particulars of the loans given,
investments made or guarantees given or security provided as required under section 186 of
the Companies Act, 2013, Regulation 34(3) and Schedule V of the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015 in Notes 57 and 58 forming part of the
financial statements.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES:
Pursuant to the amendments to the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015, the Company has revised its existing Related
Party Transactions Policy to align it with the requirements of the said Regulations.
The Audit Committee and the Board of Directors have reviewed and
approved the amended Related Party Transactions Policy and the same has been uploaded on
the Company's website
https://www.larsentoubro.com/corporate/about-lt-group/corporate-policies/.
The Company has a process in place to periodically review and monitor
Related Party Transactions.
During the year under review, all related party transactions were in
the ordinary course of business and at arm's length. The Audit Committee has approved the
related party transactions for the FY 2022 and the estimated related party transactions
for FY 2023.
There were no related party transactions that have conflict with the
interest of the Company.
The Company proposes to enter into a material related party transaction
with L&T Finance Limited for providing a line of credit of Rs 2,000 crore for a period
of 5 years from FY 2023 till FY 2027. The transaction is not a material related party
transaction as per the provisions of the Companies Act, 2013. However, the said
transaction exceeds the materiality threshold of Rs 1,000 crore as provided under
Regulation 23(1) of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015. The Company has sought an enabling approval from the Shareholders by
means of a Postal Ballot. The results of the Postal Ballot will be declared on or before
18th May 2022.
The Company is seeking an enabling approval for certain material
related party transactions at the ensuing Annual General Meeting (AGM). Shareholders are
requested to refer to the AGM notice at pages 258 to 279 of this Annual Report, for
details of the proposed related party transactions.
MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION OF
THE COMPANY,
BETWEEN THE END OF THE FINANCIAL YEAR AND THE DATE OF THE REPORT:
Other than stated elsewhere in this report, there are no material
changes and commitments affecting the financial position of the Company between the end of
the financial year and the date of this report.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO:
Information as required to be given under section 134(3)(m) of the
Companies Act, 2013 read with Rule 8(3) of the Companies (Accounts) Rules, 2014 is
provided in Annexure 'A' forming part of this Board Report.
RISK MANAGEMENT:
The Board Risk Management Committee comprises Mr. Adil Zainulbhai, Mr.
Sanjeev Aga and Mr. Subramanian Sarma, Directors of the Company. Mr. Adil Zainulbhai is
the Chairman of the Committee.
The Charter of the Committee is to assist the Board in fulfilling its
oversight responsibilities of reviewing the existing Risk Management Policy, Framework,
Risk Management Structure and Risk Management Systems.
The Committee periodically reviews the risk status to ensure that
executive management mitigates the risks by means of a properly designed framework.
For further details on risk management, please refer to page 306 of
this Annual Report.
DETAILS OF DIRECTORS AND KEY MANAGERIAL PERSONNEL APPOINTED/ RESIGNED:
Mr. Subodh Bhargava ceased to be an Independent Director of the Company
with effect from March 29, 2022 on account of completion of his tenure. The Board places
on record its appreciation towards valuable contribution made by him during his tenure as
Director of the Company.
Pursuant to the recommendation of the Nomination and Remuneration
Committee (NRC), the Board at its Meeting held on March 24, 2022 has approved the
appointment of Mr. Pramit Jhaveri as an Independent Director for a period of five years
with effect from April 1, 2022 till March 31, 2027, subject to the approval of
shareholders through special resolution. The approval has been sought by means of a Postal
Ballot and the results will be declared on or before 18th May 2022. The NRC considered the
appointment of Mr. Jhaveri as an Independent Director after evaluating the skills,
knowledge and experience required on the Board as per the approved skill matrix.
The Board pursuant to the recommendation of the NRC and report of his
performance evaluation, re-appointed Mr. S.N Subrahmanyan as Chief Executive Officer and
Managing Director of the Company for a period of five years from July 1, 2022 upto and
including June 30, 2027. His appointment shall be subject to the approval of the
shareholders.
Mr. Subramanian Sarma, Mr. S. V. Desai and Mr. T. Madhava Das, retire
by rotation at the ensuing Annual General Meeting (AGM) and being eligible, offer
themselves for re-appointment.
The notice convening the AGM includes the proposal for re-appointment
of Directors.
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 Independent Directors regarding their roles, rights and
responsibilities in the Company and the nature of the industry in which the Company
operates, the business model of the Company, etc.
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 293 and
294 of this Annual Report.
AUDIT COMMITTEE:
The Company has in place an Audit Committee in terms of the
requirements of the Companies Act, 2013 read with the rules made thereunder and Regulation
18 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The
details relating to the same are given in Annexure 'B' - Report on Corporate Governance
forming part of this Board Report. Members are requested to refer to pages 298 to 300 of
this Annual Report.
STAKEHOLDERS RELATIONSHIP COMMITTEE:
The Company has in place a Stakeholders Relationship Committee in terms
of the requirements of the Companies Act, 2013 read with the rules made thereunder and
Regulation 20 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015. The details relating to the same are given in Annexure 'B' - Report on Corporate
Governance forming part of this Board Report. Members are requested to refer to page 304
of this Annual Report.
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 and Disclosure Requirements)
Regulations, 2015. The details relating to the same are given in Annexure 'B' - Report on
Corporate Governance forming part of this Board Report. Members are requested to refer to
pages 300 to 303 of this Annual Report.
The Committee has formulated a policy on Directors' appointment and
remuneration including recommendation of remuneration of the key managerial personnel and
senior management personnel, and the criteria for determining qualifications, positive
attributes and independence of a Director. Nomination and Remuneration Policy is provided
as Annexure 'F' forming part of this Board Report and also disclosed on the Company's
website at https://www.larsentoubro.com/corporate/about-lt-group/corporate-policies/. The
Committee has also formulated a separate policy on Board Diversity.
DECLARATION OF INDEPENDENCE:
The Company has received Declarations of Independence as stipulated
under section 149(7) of the Companies Act, 2013 and Regulation 25(8) of SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015 from Independent Directors
confirming that he/she is not disqualified from being appointed/re-appointed/ continue as
an Independent Director as per the criteria laid down in section 149(6) of the Companies
Act, 2013 and Regulation 16(1)(b) of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015. The same are also displayed on the website of the Company
http://investors.larsentoubro.com/Listing-Compliance.aspx. The Independent Directors have
complied with the Code for Independent Directors prescribed in Schedule IV to the
Companies Act, 2013.
The Independent Directors of the Company have registered themselves
with the data bank maintained by Indian Institute of Corporate Affairs (IICA). In terms of
section 150 of the Companies Act, 2013 read with Rule 6(4) of the Companies (Appointment
and Qualification of Directors) Rules, 2014, all Independent Directors, except Mr. Pramit
Jhaveri, are exempted from undertaking the online proficiency self-assessment test
conducted by IICA. Mr. Pramit Jhaveri shall complete the online proficiency
self-assessment test within the prescribed timelines.
PERFORMANCE EVALUATION:
The Nomination and Remuneration Committee and the Board have laid down
the manner in which formal annual evaluation of the performance of the Board, Committees,
Individual Directors, CEO & MD and the Chairman has to be made. All Directors
responded through a structured questionnaire giving feedback about the performance of the
Board, its Committees, Individual Directors, CEO & MD and the Chairman.
For the year under review, the questionnaire was updated suitably based
on the comments and suggestions received from Independent Directors. As in the previous
years, an external consultant was engaged to receive the responses of the Directors and
consolidate/ analyze the responses. The same external consultant's IT platform was used
from initiation and till conclusion of the entire board evaluation process. This ensured
that the process was transparent and independent of involvement of the Management or the
Company's IT system. This has enabled unbiased feedback.
The Board Performance Evaluation inputs, including areas of improvement
for the Directors, Board processes and related issues for enhanced Board effectiveness
were discussed in the meetings of the Nomination and Remuneration Committee and the Board
of Directors held on May 12, 2022.
DISCLOSURE OF REMUNERATION:
The details of remuneration as required to be disclosed under the
Companies Act, 2013 and the rules made thereunder, are given in Annexure 'D' forming part
of this Board Report.
The information in respect of employees of the Company pursuant to Rule
5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel)
Rules, 2014, as amended from time to time, is provided in Annexure 'G' forming part of
this report. In terms of section 136(1) of the Companies Act, 2013 and the rules made
thereunder, the Report and Accounts are being sent to the Shareholders excluding the
aforesaid Annexure. Any Shareholder interested in obtaining a copy of the same may write
to the Company Secretary at the Registered Office of the Company. None of the employees
listed in the said Annexure is related to any Director of the Company.
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.
ADEQUACY OF INTERNAL FINANCIAL CONTROLS:
The Company has designed and implemented a process driven framework for
Internal Financial Controls ("IFC") within the meaning of the explanation to
section 134(5)(e) of the Companies Act, 2013. For the year ended 31st March 2022, the
Board is of the opinion that the Company has sound IFC commensurate with the nature and
size of its business operations and operating effectively and 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.
DEPOSITORY SYSTEM:
As the members are aware, the Company's shares are compulsorily
tradable in electronic form. As on 31st March 2022, 98.89% of the Company's total paid up
capital representing 138,93,93,268 shares are in dematerialized form.
Pursuant to amendments in SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015, with effect from January 24, 2022, requests for effecting
transfer of securities in physical form, shall not be processed by the Company and all
requests for transmission, transposition, issue of duplicate share certificate, claim from
unclaimed suspense account, renewal/exchange of securities certificate, endorsement,
sub-division/split of securities certificate and consolidation of securities
certificates/folios need to be processed only in dematerialized form. In such cases the
Company will issue a letter of confirmation, which needs to be submitted to Depository
Participant(s) to get credit of the securities in dematerialized form. Shareholders
desirous of availing these services are requested to refer to the detailed procedure for
availing these services provided on the website of the Company at
https://investors.larsentoubro.com/shareholder-services.aspx.
In view of the numerous advantages offered by the Depository system as
well as to avoid frauds, members holding shares in physical form are advised to avail of
the facility of dematerialization from either of the Depositories.
In adherence to SEBI's circular to enhance the due-diligence for
dematerialization of the physical shares, the Company has provided the static database of
the shareholders holding shares in physical form to the depositories which would augment
the integrity of its existing systems and enable the depositories to validate any
dematerialization request.
TRANSFER TO INVESTOR EDUCATION AND PROTECTION FUND:
The Company has been regularly sending communications to members whose
dividends are unclaimed requesting them to provide/update bank details with Registrar and
Transfer Agents (RTA)/Company, so that dividends paid by the Company are credited to the
investor's account on time. Efforts are also made by the Company in co-ordination with the
RTA to locate the shareholders who have not claimed their dues.
Despite these efforts, an amount of Rs 9,12,62,638 which was due and
payable and remained unclaimed and unpaid for a period of seven years, was transferred to
Investor Education and Protection Fund (IEPF) as provided in section 125 of the Companies
Act, 2013 and the rules made thereunder.
Cumulatively, the amount transferred to the said fund was Rs
46,79,35,382 as on 31st March 2022.
In accordance with the provisions of the section 124(6) of the
Companies Act, 2013 and Rule 6(3)(a) of the Investor Education and Protection Fund
Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 ('IEPF Rules'), the Company
has transferred 3,17,463 equity shares of Rs 2 each (0.02% of total number of shares) held
by 1,530 shareholders (0.10% of total shareholders) to IEPF. The said shares correspond to
the dividend which had remained unclaimed for a period of seven consecutive years from the
financial year 2013-14. Subsequent to the transfer, the concerned shareholders can claim
the said shares along with the dividend(s) by making an application to IEPF Authority in
accordance with the procedure available on www.iepf.gov.in and on submission of such
documents as prescribed under the IEPF Rules.
The Company sends specific advance communication to the concerned
shareholders at their address registered with the Company and also publishes notice in
newspapers providing the details of the shares due for transfer to enable them to take
appropriate action. All corporate benefits accruing on such shares viz. bonus shares, etc.
including dividend except rights shares shall be credited to IEPF.
CORPORATE SOCIAL RESPONSIBILITY:
The Corporate Social Responsibility (CSR) Committee comprises of Mr. M.
M. Chitale, Mr. R. Shankar Raman and Mr. D. K. Sen as the Members. Mr. Chitale is the
Chairman of the Committee.
The CSR policy framework and Annual Action Plan for FY 2023 is
available on the Company's website at
https://investors.larsentoubro.com/corporate-governance.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 304 to 306 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.
The Chief Financial Officer of the Company has certified that CSR funds
so disbursed for the projects have been utilized for the purposes and in the manner as
approved by the Board.
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 believes that every employee should have the opportunity to
work in an environment free from any conduct which can be considered as Sexual Harassment.
The Company is committed to treating every employee with dignity and
respect. The Company has formulated a policy on 'Protection of Women's Rights at
Workplace' as per the provisions of the Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013 and Rules, 2013. The policy is
applicable to all L&T establishments located in India. The policy has been widely
disseminated. The Company has constituted Internal Complaints Committees to ensure
implementation and compliance with the provisions of the aforesaid Act and the Rules.
This Policy encompasses the following objectives:
• To define Sexual Harassment;
• To lay down the guidelines for reporting acts of Sexual
Harassment at the workplace; and •
• To provide the procedure for the resolution and redressal of
complaints of Sexual Harassment.
A detailed procedure for making a Complaint, initiating an enquiry,
redressal process and preparation of report within a stipulated timeline is laid out in
the Policy document.
The Policy also covers Disciplinary Action for Sexual Harassment. The
Policy is uploaded on the Company's website at
https://www.larsentoubro.com/corporate/about-lt-group/corporate-policies/ .
Training programs and workshops for employees are organised throughout
the year. The orientation programs for new recruits include awareness sessions on
prevention
of sexual harassment and upholding the dignity of employees. Specific
programs have been created on the digital platform to sensitize employees to uphold the
dignity of their colleagues and prevention of sexual harassment. During FY 2022, abouRs
11,100 employees have undergone training through the programs/ workshops including the
awareness sessions held on digital platform.
There were 2 complaints received during the FY 2022. Both the
complaints were redressed as per the provisions of the Sexual Harassment of Women at
Workplace (Prevention, Prohibition and Redressal) Act, 2013 and Rules, 2013.
OTHER DISCLOSURES:
• ESOP Disclosures: There has been no change in the
Employee Stock Option Schemes (ESOP schemes) during the current financial year.
The disclosure relating to ESOPs required to be made under the
provisions of the Companies Act, 2013 and the rules made thereunder and the Securities and
Exchange Board of India (Share Based Employee Benefit and Sweat Equity) Regulations, 2021
("SBEB Regulations") is provided on the website of the Company https://investors.larsentoubro.com/Listing-Compliance.aspx .
A certificate obtained from the Secretarial Auditors, confirming that
the ESOP Schemes of the Company are in compliance with the SBEB Regulations and that the
Company has complied with the provisions of the Companies Act, 2013 and the SBEB
Regulations is also provided in Annexure 'B' forming part of this Report.
• Corporate Governance: Pursuant to Regulation 34 of the
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a Report on
Corporate Governance and a certificate obtained from the Statutory Auditors confirming
compliance with Corporate Governance requirements provided in the aforesaid Regulations,
are provided in Annexure 'B' forming part of this Report.
• Business Responsibility and Sustainability Reporting: As
per Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015, a separate section on Business Responsibility and Sustainability
Reporting forms a part of this Annual Report (refer pages 210 to 257).
• Integrated Reporting: The Company is complying with the
applicable requirements of the Integrated Reporting Framework. The Integrated Report
tracks the sustainability performance of the organization and its interconnectedness with
the financial performance, showcasing how the Company is adding value to its stakeholders.
The Integrated Report forms a part of this Annual Report.
• Annual Return: The Annual Return of the Company for the FY
2022 is available on our website https://investors.larsentoubro.com/Listing-Compliance.aspx .
• Statutory Compliance: The Company complies with all
applicable laws and regulations, pays applicable taxes on time, ensures statutory CSR
spend and initiates sustainable activities.
• MSME: The Company has registered itself on Trade Receivables
Discounting System platform (TReDS) through the service providers Receivables Exchange of
India Limited. The Company complies with the requirement of submitting a half yearly
return to the Ministry of Corporate Affairs within the prescribed timelines.
• IBC: There is no Corporate Insolvency Resolution Process
initiated under the Insolvency and Bankruptcy Code, 2016 (IBC).
• 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. •
• Remuneration received by Whole-time Director from subsidiary
company: Mr. D. K. Sen, Wholetime Director of the Company is also the Managing
Director of L&T Infrastructure Development Projects Limited (L&T IDPL), a
subsidiary of the Company. During FY 2022, part of the remuneration paid to Mr. Sen was
charged to L&T IDPL. Accordingly, the Company has recovered an amount of Rs
1,81,18,283 from L&T IDPL for remuneration paid to Mr. Sen.
VIGIL MECHANISM:
The Company has a Whistle-blower Policy in place since 2004. The Policy
has been modified to meet the requirements of Vigil Mechanism under the Companies Act,
2013. The Whistle Blower Policy is available on the Company's website
https://www.larsentoubro.com/ corporate/about-lt-group/corporate-policies/ .
Also see pages 307 and 308 forming part of Annexure 'B' of this Board
Report.
DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR
COURTS OR TRIBUNALS:
During the year under review, there were no material and significant
orders passed by the regulators or courts or tribunals impacting the going concern status
and the Company's operations in future.
CONSOLIDATED FINANCIAL STATEMENTS:
Your Directors are pleased to attach the Consolidated Financial
Statements pursuant to section 129(3) of the Companies Act, 2013 and Regulation 34 of the
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, prepared in
accordance with the provisions of the Companies Act and the Indian Accounting Standards
(Ind AS).
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 Secretarial Audit Report does not contain any qualification, reservation or
adverse remark.
AUDITORS:
M/s. Deloitte Haskins & Sells LLP were re-appointed as Statutory
Auditors for a period of 5 continuous years from the conclusion of 75th Annual General
Meeting till the conclusion of 80th Annual General Meeting of the Company.
The Auditors have confirmed that they have subjected themselves to the
peer review process of Institute of Chartered Accountants of India (ICAI) and hold valid
certificate issued by the Peer Review Board of ICAI.
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. Also see
page 308 forming part of Annexure 'B' of this Board Report.
COST AUDITORS:
The provisions of section 148(1) of the Companies Act, 2013 are
applicable to the Company and accordingly the Company has maintained cost accounts and
records in respect of the applicable products for the year ended March 31, 2022.
Pursuant to the provisions of section 148 of the Companies Act, 2013
and as per the Companies (Cost Records and Audit) Rules, 2014 and amendments thereof, the
Board, on the recommendation of the Audit Committee, at its meeting held on 12th May 2022,
has approved the appointment of M/s R. Nanabhoy & Co., Cost Accountants, as the Cost
Auditors for the Company for the financial year ending 31st March 2023 at a remuneration
of Rs 17 lakhs plus taxes and out of pocket expenses.
A proposal for ratification of remuneration of the Cost Auditor for FY
2023 is placed before the Shareholders.
The Report of the Cost Auditors for the financial year ended 31st March
2022 is under finalization and shall be filed with the Ministry of Corporate Affairs
within the prescribed period.
ACKNOWLEDGEMENT:
The 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 other stakeholders for their continued co-operation
and support to the Company. Your Directors also wish to record their appreciation for the
continued co-operation and support received from the Joint Venture Partners/Associates.
|
For and on behalf of the Board |
|
A.M. NAIK |
| Date : 12th May 2022 |
Group Chairman |
| Place : Mumbai |
(DIN: 00001514) |
Larsen & Toubro Ltd
Company Background
| Incorporation Year | 1946 |
| Registered Office | L&T House,Ballard Estate
Mumbai,Maharashtra-400001 |
| Telephone | 91-22-67525656,Managing Director |
| Fax | 91-22-67525893 |
A M NaikS N Subrahmanyan| Company Secretary | Sivaram Nair A |
| Auditor | Deloitte Haskins & Sells LLP |
| Face Value | 2 |
| Market Lot | 1 |
| Listing | BSE,London,Luxembourg,MSEI ,NSE, |
| Registrar | KFin Techologies Ltd
Karvy Selenium Tow-B,31&32 Financial Dist,Nanakramguda ,Hyderabad-500032 |
Larsen & Toubro Ltd
Company Management
| Director Name | Director Designation | Year |
|---|
| A M Naik | Group Chairman | 2022 |
| M M Chitale | Non-Exec. & Independent Dir. | 2022 |
| S N Subrahmanyan | Managing Director & CEO | 2022 |
| R Shankar Raman | Whole Time Director & CFO | 2022 |
| M Damodaran | Non-Exec. & Independent Dir. | 2022 |
| Vikram Singh Mehta | Non-Exec. & Independent Dir. | 2022 |
| Adil Zainulbhai | Non-Exec. & Independent Dir. | 2022 |
| Subramanian Sarma | Whole Time Director & SeniorVP | 2022 |
| M V Satish | Whole Time Director & SeniorVP | 2022 |
| Sanjeev Aga | Non-Exec. & Independent Dir. | 2022 |
| Narayanan Kumar | Non-Exec. & Independent Dir. | 2022 |
| Hemant Bhargava | Nominee (LIC) | 2022 |
| Sivaram Nair A | Company Secretary | 2022 |
| SUDHINDRA VASANTRAO DESAI | Whole Time Director & SeniorVP | 2022 |
| T Madhava Das | Whole Time Director & SeniorVP | 2022 |
| Preetha Reddy | Independent Director | 2022 |
| Pramit Jhaveri | Independent Director | 2022 |
Larsen & Toubro Ltd
Listing Information
| Listing Information |
|---|
| BSE_SENSEX |
| NIFTY |
| BSE_500 |
| BSE_CG |
| BSE_100 |
| BSE_200 |
| BSEDOLLEX |
| CNX500 |
| CNX100 |
| CNXINFRAST |
| CNX200 |
| BSECARBONE |
| BSEINFRA |
| NFT100EQWT |
| BSEALLCAP |
| BSELARGECA |
| INDUSTRIAL |
| BSEMANUFAC |
| SENSEX50 |
| BSEBHARA22 |
| LMI250 |
| BSEDSI |
| BSELVI |
| NFT50EQWT |
| NFT100LV30 |
| BSE100LTMC |
| NFTYLM250 |
| NFTYALV30 |
| NF500M5025 |
Larsen & Toubro Ltd
Finished Product
| Product Name | Unit | Installed
Capacity | Production
Quantity | Sales
Quantity | Sales
Value |
|---|
| Construction & Proj. Activity | Rs. | 0 | 0 | 0 | 78091 |
| Manufacturing &Trading Activit | NA | 0 | 0 | 0 | 2065.73 |
| Service Rendered | Rs. | 0 | 0 | 0 | 1141.31 |
| Other Operational Income | NA | 0 | 0 | 0 | 765.67 |
| Property Development Activity | NA | 0 | 0 | 0 | 174.82 |
| Commission | Rs. | 0 | 0 | 0 | 98.25 |
| Engineering & Service Fees | NA | 0 | 0 | 0 | 46.87 |
| Nuclear Purpose Equipment | NA | 0 | 0 | 0 | 0 |
| Others | NA | 0 | 0 | 0 | 0 |
| Parts & Accessories for Prime | No | 0 | 0 | 0 | 0 |
| Parts for aircraft & Other Met | No | 0 | 0 | 0 | 0 |
| Powder Metallurgy Products | NA | 0 | 0 | 0 | 0 |
| Compmens/Engineering/Serv Fees | Rs. | 0 | 0 | 0 | 0 |
| Design,dvlp & mfg of airbon Eq | No | 0 | 0 | 0 | 0 |
| Sale of Services | NA | 0 | 0 | 0 | 0 |
| Oil-Crude | Bbl | 0 | 0 | 0 | 0 |
| Portland Cement | MT | 0 | 0 | 0 | 0 |
| Ready Mix Concretes | CuM | 0 | 0 | 0 | 0 |
| Pulp/Paper Making Plant | MT | 0 | 0 | 0 | 0 |
| Glass Bottles & Jars | No | 0 | 0 | 0 | 0 |
| Steel Re-Rolling | MT | 0 | 0 | 0 | 0 |
| Steel Structure-Fabrication | MT | 0 | 0 | 0 | 0 |
| Steel Structure-Fabrication | No | 0 | 0 | 0 | 0 |
| Trans.Line Towers | MT | 0 | 0 | 0 | 0 |
| Gas Containers-Carrying Cap. | Ton | 0 | 0 | 0 | 0 |
| Presstools/Jigs/Fixtures | No | 0 | 0 | 0 | 0 |
| Presstools/Jigs/Fixtures | Rs. | 0 | 0 | 0 | 0 |
| Crown Corks | No | 0 | 0 | 0 | 0 |
| Al.Capsules/RO/ROPP Cap/Others | No | 0 | 0 | 0 | 0 |
| Welding Alloys/Accessories | Rs. | 0 | 0 | 0 | 0 |
| Industrial Machinery | MT | 0 | 0 | 0 | 0 |
| Power Plants | NA | 0 | 0 | 0 | 0 |
| Rubber Process. Machinery | No | 0 | 0 | 0 | 0 |
| Equip./Deaerator-Nuclear Purp. | MT | 0 | 0 | 0 | 0 |
| Plant/Equipment-Nuclear Proj. | MT | 0 | 0 | 0 | 0 |
| Petrol Dispen./Metering Pumps | No | 0 | 0 | 0 | 0 |
| Suspended Particles Drying Pl. | No | 0 | 0 | 0 | 0 |
| Cement Machinery | No | 0 | 0 | 0 | 0 |
| Bottling-High Speed | No | 0 | 0 | 0 | 0 |
| Packaging Machinery | Rs. | 0 | 0 | 0 | 0 |
| Earthmoving Machinery | No | 0 | 0 | 0 | 0 |
| Scrapper/Bulldozer/Ripper | No | 0 | 0 | 0 | 0 |
| Road Rollers/Hot Mix Plants | No | 0 | 0 | 0 | 0 |
| Dairy Machinery & Equipment | No | 0 | 0 | 0 | 0 |
| Feed Milling Plants & Grain | No | 0 | 0 | 0 | 0 |
| Food Processing Equipment | MT | 0 | 0 | 0 | 0 |
| Sugarcane/Beet diffusion Plant | No | 0 | 0 | 0 | 0 |
| Chemical Plant & Machinery | Ton | 0 | 0 | 0 | 0 |
| Valves & Accessories | NA | 0 | 0 | 0 | 0 |
| Valves-Steel Plant | No | 0 | 0 | 0 | 0 |
| Defence Equipments | No | 0 | 0 | 0 | 0 |
| Electrical Items-Miscellaneous | No | 0 | 0 | 0 | 0 |
| Electronic Devices | No | 0 | 0 | 0 | 0 |
| Switchgears | No | 0 | 0 | 0 | 0 |
| Relays | No | 0 | 0 | 0 | 0 |
| Control & Relay Panels | No | 0 | 0 | 0 | 0 |
| Indl.Electronic Control Panels | No | 0 | 0 | 0 | 0 |
| Commercial Ships | No | 0 | 0 | 0 | 0 |
| Ship Auxillaries & Components | MT | 0 | 0 | 0 | 0 |
| Electro Surgical Unit & Acces. | No | 0 | 0 | 0 | 0 |
| Patient Monitoring Systems | No | 0 | 0 | 0 | 0 |
| Ultrasound Eqpts./Access. | No | 0 | 0 | 0 | 0 |
| Electricity meters | No | 0 | 0 | 0 | 0 |